Insolvency and Bankruptcy Board of India Amends Liquidation Regulations to Hasten Process

In a move aimed at speeding up the liquidation process, the Insolvency and Bankruptcy Board of India amended its regulations to allow a corporate debtor’s asset that is “not readily realisable” to be transferred to a third party in consultation with stakeholders, The Economic Times reported. Creditors can also transfer debt due to them to a third party during the liquidation process to benefit creditors who may not be willing to wait for completion of the process. The Insolvency and Bankruptcy Code envisages early closure of the liquidation process so that the assets of the debtor are released for alternative use expeditiously, IBBI said. “However, the process takes longer where the liquidation estate includes a not-readily realisable asset,” IBBI said in a statement on November 13. Read more