Amid differences between lenders and bidders on the proper valuation of a stressed company, the government is considering a proposal to ask insolvency resolution professionals to get the enterprise valuation of the firm done, along with the current practice of assessing only the liquidation value, a senior official told FE. While the liquidation value will likely to be the base for bidding, the enterprise value is meant to indicate the ideal worth of the company as a “going concern”, he added. The idea is to enable both the parties to make a better assessment of the worth of the company and submit or accept bids accordingly, said the official.

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