News That Matters

Tag: Guarantors

Guarantors too will be in insolvency net

Guarantors too will be in insolvency net

Finance
The insolvency regulator is readying rules that will enable creditors to go after guarantors of ailing companies to recover dues, a move that will tighten the grip around companies as well as their promoters who had given personal covers. The Insolvency & Bankruptcy Board of India (IBBI) is working on guidelines that are expected to be ready in the next few weeks, sources said, adding that the idea is to help banks and individuals recover dues from guarantors where they have failed to have the entire claims settled during the resolution process, sources told TOI. When contacted, IBBI chairman M S Sahoo confirmed the development. “We are working on rules and regulations to operationalise insolvency of personal guarantors in companies,” Sahoo said. The regulations will also s...