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IBBI allows transfer of illiquid assets and debt for quicker case closure

The rules come at a time when the liquidation process takes much longer than envisaged under IBC

gavel, IBC, Insolvency, bankruptcy, court, judgement, laws
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The bankruptcy regulator has defined “not readily realisable asset” as any asset included in the liquidation estate which could not be sold through available options.

Ruchika Chitravanshi New Delhi
The insolvency and bankruptcy board of India (IBBI) has notified the rules allowing a liquidator to assign not readily realisable assets or illiquid assets to third parties in order to facilitate quick closure of the liquidation process. 

If there is a creditor who is not willing to wait for completion of liquidation process for realisation of his debt, IBBI has enabled such a creditor to “assign or transfer the debt due to it to any other person in accordance with the law.” 

The rules come at a time when the liquidation process takes much longer than envisaged under the Insolvency

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First Published: Nov 18 2020 | 8:03 PM IST

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