New amendments to bankruptcy code look to boost returns of stressed assets

IBBI had invited comments from the stakeholders to suggest if parts of stressed assets could be sold off instead of as a whole

Insolvency resolution professionals (RP) and committees of creditors (CoC) may request a resolution plan for the second time to sell parts of a borrower’s assets in cases where no plan is received as a whole, according to amendments introduced last week.

The changes to the Insolvency and Bankruptcy Board of India (IBBI) enable a resolution plan to include the sale of one or more assets of a borrower to one or more successful resolution plan applicants.

IBBI has made changes to allow assets to be marketed for better value. Details of the assets would be displayed prominently to enable a wider audience