more-inThe biggest concern regarding the amendments to the Insolvency and Bankruptcy Code (IBC) is that they will cause disruption in nearly all pending insolvency proceedings, according to leading insolvency lawyer Sumant Batra. This is because the eligibility of all bidders will have to be ascertained before examining their bids. “It is possible that the court does not stay the insolvency process and the promoter loses his company. But later, if the bank’s decision is found to be illegal by the court, the promoter would become entitled to claim damages from the bank,” Mr. Batra said. “This will pose a challenge for resolution applicant in determining eligibility of foreign bidders,” he added.

Source: The Hindu November 23, 2017 17:15 UTC