India – Government Amends The Rules Relating To Insolvency Of Corporate Debtor To Ensure Time Bound Insolvency Process.

The Insolvency and Bankruptcy Board of India (IBBI) has introduced amendments to the IBBI (Resolution Process for Corporate Persons) Regulations, 2016. In order to address the issue of delays in the corporate insolvency resolution process (CIRP), modifications in the invitation of expression of interest, the request for resolution plan, the evaluation matrix, and the resolution plan will now only be permitted once. Further, the amendments mandate that the Committee of Creditors (CoC) cannot consider resolution plans that are received beyond the specified period or received from someone outside the final prospective applicants’ list or is not in accordance with law.
 

The resolution professional can now use a challenge mechanism to allow resolution applicants to improve their resolution plans. The challenge mechanism has been introduced to improve transparency of the CIRP while also resulting in maximization of value of the corporate debtor.
 

Please click here to read our detailed note on the amendment. 
 

 

For further information, please contact:  

Souvik Ganguly, Partner, Acuity Law