It also suggested that a professional code of conduct for the CoC be put in place, which would define and circumscribe their decisions, as these have larger implications for the efficacy of the Code.
The erosion of value of stressed firms before the initiation of the corporate insolvency resolution process (CIRP) is a matter of concern, corporate affairs secretary Rajesh Verma said on Friday.
Still, creditors have been able to recover more than 180% of the liquidation value of the corporate debtors where resolution has taken place, Verma said at a CII event. In fact, more than 30% of the firms that have been rescued under the Insolvency and Bankruptcy Code (IBC) were not even going concerns, the secretary said, as he called the five-ye…
Read the full article at: https://www.financialexpress.com/industry/pre-cirp-asset-value-erosion-a-matter-of-concern-corporate-affairs-secretary-rajesh-verma/2319275/