Liquidation regulations amended to abolish sale as going concern

IBBI removes sale of company as going concern in liquidation; now only asset sales allowed, shifting focus strictly to terminal liquidation process

The Insolvency and Bankruptcy Board of India (IBBI) — in its latest amendments to IBC regulations — has done away with the provision of allowing sale of a company as a going concern under the liquidation process.

 

The changes in the liquidation process second amendment, omitting the said provision, were made by the IBBI in a notification dated October 14.

 

The insolvency regulator, in an earlier discussion paper, had raised several concerns regarding the sale of a company as a going concern under the liquidation process. It included poor outcomes, prolonged legal disputes, increased costs, and delays in