Insolvency Bankruptcy Code: Govt to come out with ordinance to tighten law 04:00NEW DELHI: The ordinance to make several companies as well as some promoters ineligible to bid for ailing companies may result into reopening of 100-150 cases with insolvency professionals beginning to dispatch letters to bidders to disclose if they are facing action in various forums. "Insolvency professionals are asking bidders to declare that they do not violate any of the provisions that have been inserted. Besides, it wants to know if the management has been cooperatiing during the insolvency process or not.Since the Insolvency & Bankruptcy Code was enacted last year, over 300 cases have been filed with the NCLT with many of them coming from the lenders, while other creditors have also taken the route to recover dues. Once a plea is admitted, NCLT appoints an insolvency professional who takes charge of the company. Between all this the insolvency professional seeks clearances from the committee of creditors, which oversees the running of the company.

Source: Times of India November 24, 2017 23:33 UTC