Chennai: It is not just promoters identified as wilful defaulters who have been barred from bidding for companies under the insolvency resolution process. The latest changes to the IBC (Insolvency and Bankruptcy Code), through an ordinance, has shut the doors firmly on guarantors to loans obtained by promoters from bidding as well.
A person shall not be eligible to submit a resolution plan if he/she “has executed an enforceable guarantee in favour of a creditor, in respect of corporate debtor under insolvency resolution process or liquidation under this code,” the ordinance said.
Experts believe that barring guarantors from bidding would hit SMEs (small and medium enterprises) adversely. “It opens the window for scrap sale…
Read the full article at: https://timesofindia.indiatimes.com/business/india-business/ibc-bars-guarantors-bidding-for-firms-under-insolvency/articleshow/61855571.cms
