New Delhi: The Insolvency and Bankruptcy Board of India (IBBI) has told debt resolution professionals to be more open about bankrupt companies’ past losses that can be carried forward, helping attract fresh investments into the company.
The idea is that greater disclosures about ‘carry forward’ of past losses, which will lower future tax liability of the company, could result in more viable debt resolution plans.
In an order issued late on Monday, IBBI told professionals that in their notices inviting bids, they should have a separate section showing the extent of carry forward of past losses available to the entity.
The regulator said that based on its review of notices inviting bids for bankrupt companies it felt disclosures…
