Please find the following update under IBBI
| Regulations | Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021 | Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) (Amendment) Regulations, 2026. | Comments |
| Regulation 2, sub-regulation (1), clause (g) | fair value means the estimated realisable value of the assets of the corporate debtor, if they were to be exchanged on the pre-packaged insolvency commencement date between a willing buyer and a willing seller in an arm‘s length transaction, after proper marketing and where the parties had acted knowledgeably, prudently and without compulsion; | fair value means the estimated realizable value of the corporate debtor or the assets of the corporate debtor, as the case may be, if they were to be exchanged on the insolvency commencement date between a willing buyer and a willing seller in an arm‟s length transaction, after proper marketing, and where the parties had acted knowledgeably, prudently, and without compulsion. Explanation- The estimated realizable value of the corporate debtor shall be computed after taking into account the total estimated realizable value of all the assets of the corporate debtor including but not limited to tangible and intangible assets, along-with their underlying synergies.” | “Fair value” now means the estimated realizable value of the corporate debtor as a whole or its assets on the insolvency commencement date, determined on an arm’s length basis after proper marketing, expressly including all tangible and intangible assets along with their underlying synergies. |
| Regulation 39 Fair value and liquidation value. , sub-regulation (1) after sub-regulation (1) | (1) Fair value and liquidation value shall be determined in the following manner:- (a) the registered valuers appointed under regulation 38 shall submit to the resolution professional an estimate of the fair value and of the liquidation value computed in accordance with internationally accepted valuation standards, after physical verification of the inventory and fixed assets of the corporate debtor; (b) the average of the value determined by the two registered valuers shall be considered the fair value or the liquidation value, as the case maybe. | (1) Fair value and liquidation value shall be determined in the following manner, namely:- (a) the set of registered valuers appointed under regulation 38 shall comprise of one registered valuer for each asset class of the corporate debtor and within each set, one registered valuer shall be designated as the coordinating valuer for that set by the resolution professional, in consultation with the committee, for computation of the fair value of the corporate debtor; Explanation- For the purpose of clause (a),“asset class” means the definition provided under the Companies (Registered Valuers and Valuation) Rules, 2017; (b) the resolution professional shall facilitate a meeting wherein the registered valuers, including coordinating valuers, shall explain the methodology being adopted to arrive at the valuation, to the members of the committee, before computation of estimates; (c) each registered valuer shall, after physical verification of the inventory and fixed assets of the corporate debtor, submit to the resolution professional and the coordinating valuer of their respective set, a report on the fair value of the assets of the corporate debtor and the liquidation value, computed in accordance with such valuation standards as notified by the Board through circular; (d) the coordinating valuer of a set shall compute the fair value of the corporate debtor after considering the fair value of the assets as computed by the registered valuers within that set, along with their underlying synergies, and submit the same to the resolution professional; (e) the average of the two estimates of the fair value submitted by the coordinating valuers shall be considered as the fair value of the corporate debtor; and (f) the average of the two estimates of the liquidation value submitted by registered valuers in each asset class shall be considered as the liquidation value of the corporate debtor.” For the purposes of this regulation, a registered valuer shall prepare the valuation report and maintain such documentation as per the format notified by the Board through circular | Fair value and liquidation value must be determined through two sets of registered valuers (one per asset class with a coordinating valuer), who explain their methodology to the CoC, conduct physical verification, compute values as per Board-notified standards including synergies, and where the final fair and liquidation values are taken as the average of the two estimates For this regulation, a registered valuer is required to prepare the valuation report and maintain supporting documentation in the format prescribed by the Board through a circular. |
Link – https://ibbi.gov.in/uploads/legalframwork/ba0eb690a715a299cbab4d8e877bfd43.pdf
