I wish life was so simple, even I would have taken over sick company under NCLT and became promoter of listed companies. Whenever the companies undergo insolvency, there would be multiple issues, from non-payment to operational creditor, labour union related issues, EPFO defeaults (which is criminal offence in my understanding for directors during that period and company), cheque dishounour resulting in 138 ACT cases under Negotiable instruments. While the IBC is kind of going to insulate new promoters and company. But company would continue to receive notices till all stakeholder take note of fact. For instance, State Government would continue to issue notices of past VAT (despite Act provide clearnace under IBC).
There are lot of practical issues involved. While the new promoters are insulated, but still, since system are not prefect, one would continue to receive notices for past offences/issues. So need to present and mention the development. Even that involve cost of lawyers and other efforts on time/attention. So it would be very inefficient way to get listed particularly when SME migration to main board is relatively simple and there are more than 2000 companies which are solvant and name shack business. Hence, only positive part would be income tax shield on unaccounted loss against which in kind problems need to evaluated by new management while bidding in IBC. In nutshell, one would require team of professionals to take over company under IBC and it has mutiple issues which need to address. Life is beautiful but not simple, in my view.
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