Upon the termination of a project, the clients of engineering, procurement and construction (EPC) firms invoke performance bank guarantees, thereby increasing liabilities of the creditors. Photo: Priyanka Parashar/Mint
Since the introduction of the Insolvency and Bankruptcy Code, 2016 (IBC), a large number of corporate debtors rather than seeing revival have been pushed into liquidation. In case of an engineering, procurement and construction (EPC) firm, the value of its business as a going concern is largely driven by the three core assets: (a) PQs (pre-qualifications) being technical qualifications/credentials, on basis of which an EPC firm qualifies to bid for infrastructure projects; (b) order book representing the ongoing infrastruct…
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