Though the paper talks about insolvency resolution for interconnected entities, it doesn’t provide for consolidation of assets and resolution as a whole, which is the essence of a group insolvency process.
Srivastava said that it is pertinent that any amendments for introduction of group insolvency must include consolidation of assets and combination of creditors’ committees of the interconnected entities to achieve one common resolution.
In group insolvency, creditors’ voting share could be affected as voting would have to be as a collective across the entire group.
“This could introduce complications such as a substantial creditor of a single entity not having the same weight in terms of voting when compared to the creditors share at a…
