Challenges of a liquidator include wading through complicated land ownership patterns of the corporate debtor. Photo: Bloomberg
When Santanu T. Ray, a resolution professional, learnt that Conros Steel Pvt. Ltd will have to be liquidated, the first thing he did was to approach the committee of creditors (CoC) and requested all lenders to relinquish control over the companys assets, pledged as collateral for loans.
This control, or charge, as it is commonly called, is the lenders right to sell the underlying asset, if the borrower fails to repay the loan. The requirement to get lenders to sign a letter and give up their claim is just one of the several problems being faced by liquidators appointed under the Insolvency and Bankruptcy Code (IB…
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