IBBI allows splitting of companies
IBBI has allowed splitting of companies to attract more participants into the corporate resolution process as it seeks to provide flexibility and increase realisation. The move to split assets is seen to be beneficial in cases involving real estate players and other entities with multiple projects, all of which may not be viable, or there may be some assets which will generate higher value.
This is a positive move as it will enable better recovery prospects for lenders. It would also help in resolution of bankrupt conglomerates into multiple businesses.