Bidders looking to buy select assets of a distressed corporate under the Insolvency and Bankruptcy Code (IBC) process may be in for a disappointment.
A recent ruling by the Mumbai Bench of the National Company Law Tribunal (the Adjudicating Authority under the Code) makes it plain that bidders have to acquire all the assets of a distressed corporate debtor put on the block.
What this means is that piecemeal offers to buy assets are unlikely to pass muster.
In the case, pertaining to Roofit Industries, the RP (Resolution Professional, Advocate Jitender Kumar Jain) filed an application for liquidation of the corporate debtor under IBC since the CIRP (corporate insolvency resolution process) period of 180 days ended on December 26, 2017, and…
Read the full article at: http://www.thehindubusinessline.com/money-and-banking/stressed-corporate-assets-for-bidders-its-all-or-nothing/article22579491.ece
