Strategic restructuring is not, by itself, inconsistent with the objectives of the IBC. The code expressly contemplates the preservation and revival of a corporate debtor as a growing concern as stated in section 20. It requires the interim resolution professional to protect and preserve the value of the corporate debtor and manage its operations. The resolution process may ultimately result in a change in management or ownership of its liabilities.
At the same time, the commencement of CIRP (Corporate Insolvency Resolution Process) has consequences which extend beyond just restructuring. Section 14 imposes a moratorium, including restrictions on the institution or continuation of proceedings and enforcement of judgments against the…