The Centre has proposed to come out with a fresh set of regulations to prevent sick companies from going bust even if attempts to revive them fail during a resolution process under the Insolvency & Bankruptcy Code of India.
The new guidelines will provide a detailed framework to salvage a debt-trapped firm during liquidation by selling it to a potential buyer as a going concern of the company or any of its businesses.
The Insolvency & Bankruptcy Board of India will bring in the new amendment in the form of additional regulations, its chairman M. S. Sahoo, said.
The objective of the law is resolution. We make all possible efforts to save a viable company. But if theres a mistake in the earlier stage and the company is actually viable but …
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