IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021

Last updated: 10 April 2021

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The Insolvency and Bankruptcy Board of India (IBBI) has introduced the Pre-packaged Insolvency Resolution Process (PPIRP) Regulations, 2021. This new framework, effective from 9th April 2021, is designed for micro, small, and medium enterprises (MSMEs) and aims to streamline the insolvency resolution process. The regulations detail various aspects, including eligibility for professionals, public announcements, creditor meetings, and the evaluation of resolution plans.

Insolvency and Bankruptcy Board of India

No. IBBI/PR/2021/08

09th April, 2021

Press Release

Insolvency and Bankruptcy Board of India notifies the Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021.

The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 promulgated on 4^th April, 2021 provides for pre-packaged insolvency resolution process (PPIRP) for corporate debtors classified as micro, small and medium enterprises. The Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021 (PPIRP Regulations) today to enable operationalisation of PPIRP.

The PPIRP Regulations detail the Forms that stakeholders are required to use, and the manner of carrying out various tasks by them as part of the PPIRP. These provide details and manner relating to:

a. Eligibility to act as resolution professional, and his terms of appointment;

b. Eligibility of registered valuers and other professionals;

c. Identification and selection of authorised representative;

d. Public announcement and claims of stakeholders;

e. Information memorandum;

f. Meetings of the creditors and committee of creditors;

g. Invitation for resolution plans;

h. Competition between the base resolution plan and the best resolution plan;

a. Evaluation and consideration of resolution plans;

j. Vesting management of corporate debtor with resolution professional;

k. Termination of PPIRP.

3. The PPIRP Regulations come into force from 9.4.2021. These are available at www.mca.gov.in and www.ibbi.gov.in

FAQ :

These are regulations notified by the Insolvency and Bankruptcy Board of India to operationalise the pre-packaged insolvency resolution process (PPIRP) for corporate debtors classified as micro, small, and medium enterprises (MSMEs).

The PPIRP Regulations came into force on 9th April 2021.

The PPIRP is provided for corporate debtors classified as micro, small, and medium enterprises (MSMEs).

The regulations detail the forms stakeholders must use and the manner in which they should carry out various tasks, including eligibility for resolution professionals, public announcements, creditor meetings, and the evaluation of resolution plans.

The regulations are available on the websites www.mca.gov.in and www.ibbi.gov.in.

Notification No : No. IBBI/PR/2021/08
Source : https://ibbi.gov.in//uploads/press/2c3259202fdd122cabc6ef77d88c994c.pdf

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