IBBI has published a discussion paper on amendments to IBBI (Insolvency Resolution Process for Corporate Process) Regulations, 2016 on 1st November, 2023.

We are providing a summary of the key points from the document regarding valuation:

Before finalizing the valuation report, valuers shall explain the valuation methodology to the Committee of Creditors (CoC) in a meeting facilitated by the Resolution Professional (RP). This is aimed at reducing potential disputes by proactively engaging the valuer prior to finalization of valuation report.

It is proposed that the fair value to be included in the Information Memorandum provided to resolution applicants. This aims to provide more transparency and information to applicants and to attract more serious bidders and may result in better value.

In summary, the proposals focus on enhancing transparency in valuation, aligning incentives of stakeholders with actual values, and streamlining the resolution plan approval process. The overall objective seems to be facilitating better decision making by stakeholders and preventing delays.

To read in detail: https://ibbi.gov.in/uploads/whatsnew/b70daeb0fbec8cc61d1afc52e9e9fbb8.pdf

Chander Sawhney Inder Kalra Deepika Vijay Sawhney