The insolvency watchdog has amended regulations to allow the same insolvency professional to steer the resolution of a stressed firm as well as the bankruptcy proceedings of its personal guarantors.
Budget 2024
Budget at a glance: Your 2-minute guide to become a Budget Pro
The removal of the restriction on such a dual role by the resolution professional (RP) is aimed at better harmonization and effective coordination of both the processes, according to a statement by the Insolvency and Bankruptcy Board of India (IBBI).
The regulator has also made regular meetings of the committee of creditors (CoC) mandatory in bankruptcy resolution involving personal guarantors to defaulting firms. Prior to this, the RP had the freedom to decide if such m…
Read the full article at: https://m.economictimes.com/industry/miscellaneous/ibbi-allows-same-resolution-professional-to-handle-insolvency-of-a-firm-and-its-personal-guarantor/articleshow/107405343.cms