Avoidance transactions must be disclosed upfront in the Information Memorandum: Amended IBBI regulations

In a bid to make resolution plans more transparent, the Insolvency and Bankruptcy Board of India (IBBI) has amended its regulations, whereby avoidance transactions must be disclosed upfront in the Information Memorandum prepared by the corporate debtor’s resolution professional. Avoidance transactions include undervaluation, fraud, overvaluation, preferential diversion or a combination of some of these. Now,…