A rule that kept bankrupt businesses on life support is on its way out, promising speed, transparency and better liquidation value.
A rule that kept bankrupt businesses on life support is on its way out, promising speed, transparency and better liquidation value.
India’s bankruptcy rule maker recently proposed to drop the clause that allows keeping a company in liquidation as a going concern—essentially, a business that can operate and meet its obligations. While the provision intended to save jobs and preserve value, it merely encouraged lawsuits, attracted tainted owners, delayed liquidation and depressed asset values, lawyers said.
India’s bankruptcy…
