Saving viable cos more important than liquidating unviable ones: IBBI chief

MS Sahoo backed the decision to bring in the IBC amendment ordinance to suspend triggering of corporate insolvency resolutions against cos for any default for at least six months, starting March 25

Insolvency and Bankruptcy Board of India (IBBI) Chairman M S Sahoo said on Sunday it made no sense to save an insolvent firm when one could not save the economy. He said rescuing a viable firm was more crucial than failing to liquidate an unviable one during the current Covid-19 crisis. 

Addressing a webinar, Sahoo said there were 13,000 pending applications for admission of corporate insolvency resolution process filed with the National Company Law Tribunal. There were 2,000-3,000 insolvency processes which will continue under the Insolvency and Bankruptcy Code (IBC).

The IBBI chairman backed the decision of the government to