By M R Umarji
The Insolvency and Bankruptcy Board of India (IBBI) has framed regulations for insolvency resolution process which provide that liquidation value means estimated realisable value of the assets of the corporate debtor is used for computation of liquidation value.
The regulations further provide that the information memorandum prepared by the Resolution Professional shall incorporate the liquidation value.
Neither the provisions of the Insolvency and Bankruptcy Code, 2016 nor the regulations framed thereunder make any reference to the enterprise value or going concern value to be taken into consideration while preparing the resolution plans. Lack of provisions as regards to enterprise value in the IBC, is resulting in liqu…
Read the full article at: https://blogs.economictimes.indiatimes.com/et-commentary/irrelevance-of-liquidation-value-in-insolvency-bankruptcy-code/
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