New Delhi: In a move to strengthen safeguards in the insolvency resolution process for personal guarantors to the corporate debtors, Insolvency and Bankruptcy Board of India (IBBI) is learnt to have proposed changes in its norms governing the insolvency resolution process, including the exclusion of related parties of the guarantor from voting on the repayment plan, according to its discussion paper.
The insolvency watchdog’s proposals come against the backdrop of the insolvency case involving Essel Group chairman Subhash Chandra, wherein under a settlement plan it was proposed that creditors could recover just about Rs 6.5 crore from his personal estate against claims of roughly Rs 22,006 crore.
Besides, the IBBI has also called for…