Will take insolvency reforms to next level: Sahoo

IBBI has moved to the electronic mode for most of its engagements with stakeholders and has recalibrated important regulations amid the pandemic

New Delhi: The Insolvency and Bankruptcy Board of India (IBBI) has adapted itself to the new environment in the wake of the coronavirus pandemic and will strive to provide a “malleable regulatory framework” within the confines of the insolvency law, according to its Chairperson M S Sahoo.

A key institution in implementing the Insolvency and Bankruptcy Code (IBC), the IBBI has moved to the electronic mode for most of its engagements with stakeholders and has recalibrated important regulations amid the pandemic.

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Sahoo emphasised that the IBBI will remain vigilant and prepared to take on the challenges and adapt to requirements of the emerging scenario.

“IBBI will continue its engagement with stakeholders to ensure that insolvency reform remains a reform by the stakeholders, for the stakeholders and of the stakeholders. This is of utmost importance to ensure that the regulations are grounded on realities,” he said.
The government suspended fresh proceedings under the IBC and the same has been extended till March this year.

“Facilitating the implementation of special insolvency framework for MSMEs (micro, small and medium enterprises), pre-pack, cross border insolvency, group insolvency, fresh start process in sync with policy developments in this regard will be on its agenda,” Sahoo said.

The IBBI chief also said the endeavour is to promote a platform for distressed assets that has four elements — marketplace for interim finance, virtual data room, invitation of resolution plans, and auction of liquidation assets, in the interest of efficient price discovery and value maximisation.

“Keeping a company resolvable is a win-win for the company, its promoters and directors and creditors. This increases the likelihood of resolution in case of need. The IBBI intends to work towards promoting resolvability of companies,” Sahoo said.

The IBBI chief said the present health crisis has taught the whole humanity, one more time, that one needs to adapt to survive and thrive.