But MS Sahoo, the chairman of regulatory body, the Insolvency and Bankruptcy Board of India, doesnt quite agree.
He made two distinctions. That these are not bids they are plans. And plans are not suited to an auction process.
The resolution plan is expected to address the root cause of the failure of the firm, Sahoo said to BloombergQuint. The resolution plan can require change in technology, business model, management, product portfolio and it may also require rewriting the debt, equity or corporate finance part. So, this is not just bidding which is commonly understood but it is a resolution plan.
Its a point Sahoo emphasised more than once in the interview. Thats why the government forewent its first right to claim dues and why fi…
Read the full article at: https://www.bloombergquint.com/insolvency/2018/05/01/ibc-why-resolution-plans-are-unsuited-to-an-auction-according-to-indias-insolvency-regulator-ibbis-sahoo
