Liquidation process can allow public auction of non-realisable assets: IBBI

Says if auction is not possible, the assignment--transferring the rights and obligation of an asset--may be done on arm's length basis by the liquidator

With most corporate insolvency cases landing up in a long-drawn liquidation process resulting in loss of value realisation, the Insolvency and Bankruptcy Board of India (IBBI) has proposed amending the liquidation regulations through assignment of not readily realisable assets for any amount the market is willing to pay through public auction to third parties. 

IBBI has said that if auction is not possible, the assignment - transferring the rights and obligation of an asset - may be done on arm’s length basis by the liquidator. 

IBBI has proposed that the amount received be distributed among the stakeholders to close the