NEW DELHI : With nearly half of the companies in the insolvency process ending up in liquidation, the government is nudging insolvency professionals to investigate the past conduct of these businesses that may have made their rescue harder. This provision—section 66 in IBC—has been rarely used, the ministry said in the review posted on its website. The earlier the insolvency process starts, the greater the chances of the assets retaining their value. The suggestion of maximizing the value of assets available for distressed companies to explore revival plans comes at a time a large number of the companies that went through the IBC process got liquidation orders. Vijay said that the insolvency resolution profession is yet to fully develop in India, and once that happens, the outcomes would also be better.

Source: Mint August 09, 2021 19:41 UTC