A corporate debtor is a specialized manufacturing unit with valuable machinery but poor cash flow. Instead of selling the machinery, the CoC uses 39BA (1) to recommend that the RP invite a "compromise" arrangement where

Assessment of Compromise or Arrangement Regulation 39BA(1) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 states that while deciding to liquidate the corporate debtor under section 33, the committee shall examine whether to explore compromise or arrangement as referred to in Regulation 2B(1) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016 and the resolution professional shall submit the committee's recommendation to the Adjudicating Authority while filing application under section 33. Where a recommendation has been made as specified above, the resolution professional and the committee shall keep exploring the possibility of compromise or arrangement during the period the application to liquidate the corporate debtor is pending before the Adjudicating Authority.