Economics · Economy
Under corporate insolvency amendments, which of the following risks arises when judicial discretion is heavily reduced, enforcing automated strict timelines?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Resolution applicants are automatically disqualified from bidding for all assets.
- 2Financial creditors lose their voting rights completely in the Committee of Creditors (CoC).
- 3Genuinely viable firms may be pushed into liquidation/insolvency due to temporary liquidity crunches.✓
- 4Courts may indefinitely delay approval of operational plans.
Correct answer
Genuinely viable firms may be pushed into liquidation/insolvency due to temporary liquidity crunches.
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