New Delhi: Bankers have decided that they will negotiate only with the highest bidder when resolving cases of corporate insolvency.
The decision was taken at a meeting held by the Indian Banks’ Association on Monday following consultations with the Insolvency and Bankruptcy Board of India and resolution professionals. The Insolvency and Bankruptcy Code (IBC) hasn’t laid out any rules on this matter.
Conventionally, the creditors negotiate with the top few bidders to get the best value for the insolvent company.
“Since the IBC code did not specify that negotiations can be held with only the highest bidder, clarity was required given that in some cases resolution professionals and lenders entered into talks with multiple …
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