The Insolvency and Bankruptcy Board of India (IBBI) in association with the British High Commission Organises a webinar on “Sale under Liquidation Process and UK best practices for better realization for stakeholders” on Tuesday, 23 March 2021 3:30 PM – 5:30 PM Welcome Address will be delivered by Dr. Mukulita Vijayawargiya, Whole Time Member, IBBI.
Liquidation is considered as the last resort in a corporate insolvency resolution process when all possibilities of a resolution are exhausted. However, the principle of maximisation of value of the asset of the corporate debtor, as envisaged under the Insolvency and Bankruptcy Code, 2016 (“IBC”) is of utmost importance even during the Liquidation Process.
The IBBI (Liquidation Process) Regulations, 2016 provides for various methods of sale of assets which includes sale on standalone basis, slump sale, collective sale of assets, sale of assets in parcels, sale of the corporate debtor itself as a going concern and sale of business of the corporate debtor as a going concern. Such sale of assets by the Liquidator can be affected either through a public auction or private sale, subject to requisite compliances.
Insolvency Professionals acting as Liquidators are statutorily obligated to protect the interests of all stakeholders and complete the process in a time bound manner. However, during the process, they are faced with various challenges as regards the manner of fixing reserve price, exploring options of scheme of compromise and arrangement or sale of the corporate debtor as a going concern, secured creditors trying to enforce security interest outside the liquidation estate, litigation during the liquidation process on receivables of the corporate debtor and dealing with contingent claims etc.
By way of this session, emphasis will be laid upon the effective sale process under liquidation and legally addressing the practical challenges which are usually faced by the Liquidators under the process. The panellists will also bring attention to the sale process in the United Kingdom and its best practices and learnings which can be applied to in the Indian context.