The Insolvency& Bankruptcy Board of India (IBBI) is framing rules that will enable creditors to chase guarantors of defaulting companies to recover dues, sources told The Times of India.
This move is expected to help lenders tighten their grip around companies and promoters. These guidelines will be ready within a few weeks andwill help banks recover their dues in cases where the entire claims were not settled during the resolution process, the report said.
IBBI Chairman MS Sahoo confirmed this development to the paper.
According to the report, the new guidelines suggest that the government is moving ahead with personal insolvency matters, including proprietorship and partnership firms.
A government official told the paper…
Read the full article at: https://www.moneycontrol.com/news/business/new-insolvency-guidelines-will-now-net-personal-guarantors-3022321.html
