A recent court order is likely to impact the way resolution plans for stressed companies are being designed. The Mumbai bench of the National Company Law Tribunal held that a plan that envisages resolution of only some assets while excluding others is not acceptable.
The NCLT said so in the case of Roofit Industries that was admitted for insolvency in June last year. Its assets included land, building, commercial property, plant and machinery in Ratnagiri, Thane, Kurkhumb, Chennai, Hyderabad, Aurangabad and Silvasa. While several entities had expressed interest in the assets, a resolution plan was proposed only for the Chennai factory. The plan by Gummidipoondi Roofit Employees Welfare Association was presented to the NCLT for appro…
Read the full article at: https://www.bloombergquint.com/law-and-policy/2018/01/30/insolvency-law-bidders-cant-cherry-pick-assets-of-stressed-companies
