It aims to improve stakeholder representation, simplify compliance, and enhance transparency in the resolution process.
Amendments by Insolvency and Bankruptcy Board of India (IBBI)
- Revised forms for Corporate Insolvency Resolution Process (CIRP): Reducing compliance burden IPs; introduced a standardised monthly reporting cycle.
- CIRP is a process of determining the repayment capability of the defaulter to decide the recovery mechanism for creditors. If found unable to repay the debt, the company is restructured or liquidated.
- CIRP can be initiated by: A financial creditor, an operational creditor, or the corporate itself.
- CIRP is a process of determining the repayment capability of the defaulter to decide the recovery mechanism for creditors. If found unable to repay the debt, the company is restructured or liquidated.
- Flexibility in Resolution Plans: Allowed Resolution Professionals (RPs) to invite resolution plans not only for the company as a whole but also for the sale of one or more of its assets.
- This will aid resolution of companies holding assets across diverse sectors and attract sector-specific buyers.
- The Committee of Creditors may direct the RP to invite providers of interim finance to attend as observers, without voting rights.
- Guidelines for IPs: A common zone-wise Panel (valid from July 1 to December 31, 2025) to be created for appointment of IPs aimed at reducing delays in NCLT and DRT appointments.
About Insolvency and Bankruptcy Code (IBC), 2016
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