The insolvency regulator has amended regulations to allay creditor concern on valuation of bids for insolvent companies. The Insolvency and Bankruptcy Board of India (IBBI) has also cleared the confusion over what constitutes a dissenting lender.
Amendments to the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations say liquidation value to be paid to dissenting lenders will have to be kept confidential.
Earlier, this value was disclosed in the information memorandum to be given to the committee of creditors. This used to lower the value of bids, since these are based on liquidation value. The latter value is arrived at by assuming assets of the companies ar…
Read the full article at: http://www.business-standard.com/article/economy-policy/dissenting-lender-to-be-paid-liquidation-value-118010300024_1.html
