Mandatory monthly review of the progress of the resolution process, by the Committee of Creditors (CoC), disclosure of fair value to all stakeholders are among the amendments proposed by the Insolvency and Bankruptcy Board of India (IBBI) to make the Insolvency and Bankruptcy Code (IBC) process more transparent. Creditors dissenting on a resolution plan under the IBC, IBBI has proposed, should be entitled to claim the lesser of the two amounts – the resolution amount or the liquidation value.
The insolvency regulator in its discussion paper released on November 1, said that dissenting creditors often get higher entitlement than is due to them when the approved resolution value is less than the liquidation value. Under current regulations…
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