New Delhi: Experts are divided over the merits of Indias bankruptcy boards mandate requiring resolution professionals (RPs) to get advance approval for costs needed to keep a bankrupt company alive. The Insolvency and Bankruptcy Board of Indias (IBBI) latest move is aimed at providing higher oversight of such spending.
Insolvency process costs include any costsuch as for electricity and waterincurred by a RP in running a bankrupt business. IBBI amended its regulations on 15 February to say that the RP shall seek the committee of creditors (CoC) clearance for all such costs, at each meeting.
While some experts said the requirement was impractical, others said taking advance approvals from the CoCcomprising financial creditors like ba…
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