Date : 17th July 2019. Today the Cabinet clears key amendments to IBC bringing in much needed clarity to the Insolvency and Bankruptcy Code. My quick take on the likely impact of the amendments. Now there will be a 330-day deadline for corporate resolution process in place, including litigation and other judicial processes. Impact […]
Knowledge Bank
Significant changes introduced to CIRP
The Insolvency and Bankruptcy Board of India has notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2018 Key summarised aspects of the amendments are as follows: i. An application for withdrawal of an application admitted under the Code may be submitted to the IRP or RP […]
RBI denies a breather to the power sector for stressed assets
The power ministry had asked the RBI to provide a relief to the power sector in the IBC guidelines, but the central bank had refused. Leading bankers recently met to draft a proposal for bailing out stressed power assets outside the IBC route. The initial plan is that banks will identify sustainable debt in an asset […]
Locus standi of Operational Creditors in proceedings under IBC
An interesting aspect of Insolvency and Bankruptcy Code is the distinction between Financial and Operational Creditors. A key question is what was the legislative intent for it as such distinction is not made in other countries. The Financial Creditors are given almost full discretion to guide the process of resolution under the IBC framework and they decide […]
My perspectives on litigation challenges under Insolvency and Bankruptcy Code
When I met a prominent international investor last week, he did not seem very enthusiastic about IBC. One of the key points he made was that most of the major insolvency cases have witnessed some form of litigation. Some of the litigation cases have been very interesting as there is a balancing to be achieved […]