Company liquidation as a going concern, instead of winding it up and selling the assets bit by bit, is gaining traction, as it helps fetch higher value for creditors while saving the livelihood of employees.
The Ahmedabad chapter of the National Company Law Tribunal (NCLT) last week passed an order clearing the liquidation of an insolvent company, PSL Ltd, retaining its operational status and its sale as a going concern.
PSL, which has four main plants, had filed an application for a resolution process under the Insolvency and Bankruptcy Code. However, the company that was under the Board for Industrial and Financial Reconstruction for the past seven years did not get a suitable resolution proposal, and the NCLT ordered its liquidation.
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