Insolvency Regulator Says Distressed Assets Cannot Be Handed Over To ‘Undesirable’ Persons

The intent of the insolvency law is maximisation of of assets of corporate debtors and so, such assets have to handed over to a trust-worthy person, MS Sahoo, chairman of Insolvency and Bankruptcy Board of India told BloombergQuint in an interview. Sahoo was responding to a question regarding the intent of recent amendments to the insolvency regulations.

Sahoo also shared his thoughts on...

• whether the amendments will prove to be onerous for resolution professionals
• if there are any ongoing discussions with the tax department on exempting distressed companies
• whether the regulator intends to take up with SEBI the issue of halting trading in companies facing insolvency proceedings
• and the applicability of the Limitation Act on the Insolvency and Bankruptcy Code

Here is the full interview.