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Govt. Considers Modification of Insolvency Law to Prevent Defaulters from Bidding
November 15, 2017
The government is mulling over amending the insolvency law so that the promoters of defaulter companies can’t re-acquire the assets during the resolution process at a large discount.
The existing Insolvency and Bankruptcy Code doesn’t bar the promoters to bid for the stressed assets. Reports have been raised that some of the owners are planning to claim for these assets when they are put for sale by the lenders.
An amendment to the code could be introduced in the next parliamentary session, a senior government official said.
