Breaking up bad assets: Can IBBI's part-resolution rewire insolvency rules?

In a May notification, the Board allowed resolution professionals to invite resolution plans for not just the company as a whole but also for sale of one or more of its assets

The recent notification by the Insolvency and Bankruptcy Board of India (IBBI) allowing part-resolution of stressed assets of companies under the insolvency process has sent many resolution professionals (RPs) and committees of creditors (CoCs) back to the drawing board to reassess their strategies for resolving corporate insolvencies.

 

In a notification dated May 26 of this year, the IBBI allowed RPs to invite resolution plans for not just the company as a whole but also for the sale of one or more of its assets. “By enabling concurrent invitations, the resolution process can reduce timelines, prevent value erosion in viable segments,