New Delhi, Nov. 5 -- India's bankruptcy regulator has stepped in to break a gridlock between insolvency and money-laundering laws that has often stalled revival of companies. The Insolvency and Bankruptcy Board of India (IBBI) has offered guidance on how administrators of bankrupt firms could go about reviving the company when its assets are attached by the Directorate of Enforcement (ED) for financial crimes.

In an order issued on Tuesday, the bankruptcy rule maker said resolution professionals running bankrupt businesses have to move the special courts handling Prevention of Money Laundering Act (PMLA), rather than the National Company Law Tribunal (NCLT) dealing with bankruptcy cases, to unfreeze those assets for debt resolution. Revi...