New Delhi: The Insolvency and Bankruptcy Code (IBC) offers defaulting firms an opportunity for restructuring debt, which is “beneficial for personal guarantors seeking to resolve their financial difficulties”, the Ministry of Corporate Affairs (MCA) said in a communication to stakeholders.
Personal guarantors give lenders an assurance of the repayment of loans taken by corporate debtors. Usually, these individuals are promoters or directors of the companies concerned or occupy key positions in them.
Earlier this week, the insolvency regulator floated a discussion paper seeking to make it difficult for personal guarantors of defaulting firms to escape liabilities. The Insolvency and Bankruptcy Board of India (IBBI) proposed that the resolut…
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