Insolvency regulator IBBI has issued a discussion paper that seeks public comments on several measures aimed at streamlining the liquidation process. The proposals include due diligence and verification of the eligibility of the bidder, who stood as the H1 (highest) bidder in the auction process by the liquidator within 3 days of declaration of H1 bidder, placing the details of the highest bidder, due diligence conducted by the liquidator on its eligibility and the result of such due diligence before the e Stakeholders’ Consultation Committee (SCC), mandatory consultation with SCC, if he highest bid above reserve price is not acceptable for any reason to the liquidator, Reserve price in an auction is reduced by maximum 10% at a time, liquidator may sell the assets of the Corporate Debtor (CD) by means of private sale only after the prior consultation with SCC and the successful buyer shall also be confirmed after such consultation, liquidator should list all assets of the CD as per the Asset Memorandum, on a listing platform in the manner to be notified by the Board, interval between two consecutive meetings of SCC does not exceed 30 days, Liquidator to seek suggestions / observations of the SCC on the draft preliminary report and finalize it, after considering such suggestions / observations among other important issues.

Click here for IBBI Consultation paper –