Corporate insolvency and resolution is a work in progress. To smooth out its kinks, the Insolvency and Bankruptcy Board of India (IBBI) had, last week, proposed additional changes, allowing companies to withdraw an application from undergoing the insolvency process. Such an option doesnt exist now, and as a result though, several applications are filed; the Adjudicating Authority has shot them down. It also kept promoters away from regaining control despite lenders blessings.
Last week, IBBI issued a new set of draft regulations and has invited comments. As part of the proposals, besides allowing withdrawal of applications, IBBI also proposed easing financial support to liquidators in the …
Read the full article at: http://www.newindianexpress.com/business/2019/may/13/ibbi-mulls-option-for-firms-to-back-out-of-insolvency-1976251.html