The norms for fast track insolvency proceedings have been tweaked wherein both fair value and liquidation value need to be assessed for the entity concerned.
Under fast track mode, the resolution process is to be completed in 90 days.
The Insolvency and Bankruptcy Board of India (IBBI) has amended the Fast Track Insolvency Resolution Process for Corporate Persons.
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The board has already revised the norms pertaining to insolvency resolution process for corporate persons. Under this category, the proceedings have to be completed within a maximum of 270 days.
Following the amended norms, the resolution professional have to appoint registered valuers to determine the fair as well as the liquidation value of the corporate debtor, an official release said today.
Among others, the resolution plan -- approved by the committee of creditors -- should be submitted to the adjudicating authority at least 15 days before the expiry of the maximum period permitted for the completion of the corporate insolvency resolution process.
"... liquidation value due to operational creditors and liquidation value due to dissenting financial creditors, the committee of creditors shall specify the amounts payable from resources under the resolution plan for these purposes," the release said.
The IBBI is implementing the Insolvency and Bankruptcy Code (IBC) which provides for time bound and market-determined resolution process.
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