MUMBAI: The Insolvency and Bankruptcy Board of India (IBBI) is expected to step up its drive against defaulters by allowing lenders to act against high-profile individuals, including promoters of many companies, who have given personal guarantees to corporate loan defaulters.
The eight-member body will meet on Friday to discuss changes in regulations that will allow assets of personal guarantors to be encashed and used for repayment of debt via separate proceedings at the National Company Law Tribunal (NCLT), said two people familiar with the plan.
Personal guarantors who may have escaped action in the NCLT process will no longer be immune to action by creditors. A working committee of insolvency professionals had submitted recommend…
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