Interim resolution professionals acting on behalf of lenders should limit the operations of such companies to the minimum and ensure they are not mechanically run as a going concern in the first 30 days of bankruptcy proceedings when the panel of creditors is being set up.
Once the panel of creditors is formed, the resolution professional should submit a ‘going concern assessment’ about the viability of the distressed business at its first meeting so that unviable ones are not sustained with unjustifiable costs, the IBBI proposed in amendments to corporate debt resolution regulations.
The regulator also proposed allowing delayed claims by…