Almost always, a going concern should be more valuable to a creditor than a liquidated company. It is in this context that a comprehensive insolvency resolution legislation assumes importance. As such, an efficient insolvency legislation should be premised on following five pillars: I. It should prioritise going concern status over liquidation. II.
It should force the creditors to come together and work out a resolution plan that tries to preserve the value by looking at the options to keep the company as a going concern. 2  III. It should ensure a time bound resolution so that value deterioration for the creditors of an insolvent exposure is arrested. IV.