Free to negotiate for maximising asset value, RCap lenders tell NCLAT

Lenders of Anil Ambani-promoted Reliance Capital had moved the NCLAT (National Company Law Appellate Tribunal) challenging an order of the NCLT which restricted further auction of the bankrupt firm

Lenders of Reliance Capital on Monday told appellate tribunal NCLAT that there are no fetters on the power of creditors for negotiating over resolution plans in pursuit of higher valuation for the stressed asset.
 

The intent of the Insolvency & Bankruptcy Code (IBC) is to maximise the value of the assets and the Committee of Creditors are free to negotiate with the terms for that, advocate Kapil Sibal said concluding arguments on behalf of lenders.
 

Lenders of Anil Ambani-promoted Reliance Capital had moved the NCLAT (National Company Law Appellate Tribunal) challenging an order of the NCLT which restricted further auction