In 2016, India introduced the Insolvency and Bankruptcy Code (Code) paving the way for a much-needed modern framework to deal with the insolvency and bankruptcy of corporate entities in India. The Code has moved forward in leaps and bounds in a very short span of time. Due to effective implementation of the Code, green shoots have already emerged. However, further efforts are needed to make price discovery for assets, optimum. There is a need to further deepen market for resolution applications to ensure a vibrant market exists and thus offer competitive process and better price discovery.

Optimisation of price discovery is dependent on many factors. State of secondary market for distressed assets, availability of interim finance and use of litigation funding are amongst the elements that influence price discovery.

Insolvency Law Academy, in collaboration with Burford Capital, proposes to undertake an in-depth comprehensive study to identify the impediments and grey areas in optimising price discovery for assets in the process for resolution of distressed assets, within and outside of the Code, with focus on secondary market for distressed assets, interim finance and litigation funding. The study will also suggest solutions to the problems, prepare policy briefs and build awareness.

It is proposed that the study will be carried out by Mr. Sanjeev Pandey and Prof. Sulette Lombard. Mr. Sanjeev Pandey will be responsible for secondary market and post commencement finance component. Prof. Sulette Lombard will be responsible for litigation funding component. A steering committee will guide the research.
The study will culminate into a comprehensive report to be published by Insolvency Law Academy, in collaboration with Burford Capital, and a policy brief to be provided to the policy makers, regulators and other stakeholders.