Through PTI

KOLKATA: Insolvency professionals (PI) should work on a resolution plan within a certain amount of time, as the value of stressed assets decreases every day, an Insolvency and Connecticut Bankruptcy Board official said on Saturday of India (IBBI).

Speaking at a webinar hosted by MCC, permanent IBBI member Navrang Saini said PIs should be transparent and they should also ensure resolution plans are developed within a limited time frame. .

“The value of a stressed asset decreases with each passing day. It has also been observed in some cases that the resolution value was almost close to the liquidation value,” said IBBI President Saini. A resolution was supposed to be completed within 180 days.

In some cases it had been through more than 400 days, he said, adding that there were still issues in the resolution process that will go away over time. Saini said there are around 3,900 IPs in the country, but many of them don’t get any assignments because some monopolize them. “We aim to give them all an equal opportunity in the interests of stakeholders,” he said.

According to Saini, when an IP takes over a stressed asset, the person becomes the CEO of the affected company when the board is suspended. A PI must coordinate with the contracting authority (NCLT) and creditors, he said.

IBBI has also provided a code of conduct for PAs, but perfection will come with time, he added.