Government is preparing to amend insolvency law to reduce time period for resolution process

The government is preparing to modify the insolvency law in an effort to minimise the time required to complete the resolution procedure for stre­ssed assets, and to prevent the assets’ values from depreciating significantly. The decision is also a response to complaints from various quarters that many corporate insolvency resolution processes have been taking too much time owing to litigations and other challenges, despite the fact that a time limit has been established. One of the alternatives being considered is transferring the assets of a company undergoing the resolution process to the winning bidder as quickly as possible, as this would help preserve their value.