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

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