The resolution game: Who bids, who wins, and what it takes to turn a business around

By now, the company has entered CIRP. The dust has (sort of) settled. And now comes the “hero moment” everyone's been waiting for-the Resolution Plan. But here's the truth that no one glamorises: Turning around a stressed company is not about offering the highest bid. It's about offering the right one. What's a Resolution Plan, really?  At its core, a Resolution Plan is the blueprint of revival.

• Who's taking over the business?
• How much are they paying?
• What happens to employees, lenders, vendors?
• How will operations be revived?

This plan must balance realism with ambition. Too ambitious? It fails. Too cautious? It doesn't excite the CoC.

Too vague? Rejected.

“The best plans aren't written by the smartest people. They're written by those who ask the right questions.”

Who Are the Bidders? You'd be surprised. It's not always flashy corporates or big funds. Often, it's:

•  Competitors looking to acquire capacity
•  Private equity firms betting on turnaround
•  Ex-employees or founders making a comeback
•  Stressed asset funds aiming for quick flips
•  Family businesses exploring inorganic growth

Some are in it for synergy. Others? For strategy. A few? Just for the land.

Real Challenge: Access to Information

Even the most interested bidders walk away when:

•  Financials are outdated
•  Assets have legal issues
•  Vendor contracts are missing
•  There's no on-ground visibility into what they're buying

This is where an RP's coordination-and a promoter's cooperation-can make or break the resolution.

Things a Good Resolution Plan Answers

•  What's the vision for revival?
•  How will existing debts be settled?
•  Is there a management team in place?
•  Are employment continuity and compliance addressed?
•  Is the plan legally compliant with relevant provisions of IBC, 2016 read with CIRP Regulations?

It's a Game, but not a Gamble Resolution is not a blind auction. Each bid is vetted. Negotiated. Sometimes, modified multiple times. And unlike Shark Tank-this isn't just about the money. Because if the CoC isn't convinced about the execution-they'll reject it. And if litigation follows (which it often does), the bidder might just walk away.

“Resolution isn't about fixing numbers. It's about reimagining the future of a business that almost didn't make it.”  So when a company does get a solid plan approved-it's not luck. It's the result of transparency, timing, and trust built between all players. In the next article, we explore what happens when things don't go as planned.  When resolution fails. When liquidation looms.

The writer is a Chartered Accountant