The resolution professional would also have to attach the evidence of the performance security while submitting the resolution plan with NCLT for approval.Months after UK-based Liberty House failed to meet its payment commitment to acquire stressed Amtek Auto, the insolvency regulator has tightened regulations to mandate that successful resolution applicants will have to provide a performance security and a default may also cost them the chance to bid in future. The winning bidder will forfeit the security if it fails to implement the resolution plan under the Insolvency and Bankruptcy Code (IBC) or contributes to its failure once the National Company Law Tribunal (NCLT) approves it.
Not just that, the Insolvency and Bankruptcy Board of I…
Read the full article at: https://www.financialexpress.com/economy/insolvency-regulations-ibbi-tightens-noose-around-default-by-winning-bidders/1455268/