Sahoo said that it is important that the law also gives opportunities to firms to rectify their mistakes during the insolvency process
New Delhi: The Insolvency and Bankruptcy Board of India (IBBI) Chairperson MS Sahoo cautioned on Saturday that it will be dangerous to let viable firms shut down under the insolvency and bankruptcy code (IBC). While noting the rising number of stressed assets referred for resolution under the IBC, Sahoo asked the Committees of Creditors to provide all relevant information and share their vision for the firms undergoing insolvency proceedings with buyers.
He was speaking on the sidelines of a conference organised by industry body Assocham.
‘Opportunities should be given to rectify mistakes’
Sahoo said that it is important that the law also gives opportunities to firms to rectify their mistakes during the insolvency process. The objective of the law is to rescue viable companies and close down unviable ones, he said. “If due to incompetence (of market participants) the reverse happens, then it is dangerous,” Sahoo said.
The IBBI Chairperson also said that the CoC should provide all information relating to the company to the buyer so that they find interest in the companies.