Detailed liquidation rules in the works to save viable firms: IBBI chairman

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Detailed liquidation rules in the works to save viable firms: IBBI chairman

During the Oct-Dec quarter of 2018, 78 Corporate CIRPs ended in liquidation, taking the total number to 302

Over 9,500 cases worth Rs 3.75 lakh crore disposed of at IBC pre-admission stage
Insolvency: Mechanism to monitor resolution processes, performance of IPs in place
NBFCs, HFCs may be brought under bankruptcy code

KOLKATA: A detailed framework for sale of a corporate debtor as going concern and sale of business of a corporate debtor as going concern is being worked out.

Going concern principle is the assumption that an entity will remain in business for the foreseeable future after a resolution. “We will make all efforts to save a viable company. For instance, if a company is actually viable but a wrong decision has been made, it will be given another opportunity rectify the mistake,” said M S Sahoo, chairperson of the Insolvency and Bankruptcy Board of India.

Source- Business Standard.