The Insolvency and Bankruptcy Board of India amends Regulations relating to corporate insolvency proceedings

Last updated: 17 November 2020

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The Insolvency and Bankruptcy Board of India (IBBI) has introduced amendments to regulations concerning corporate insolvency and liquidation processes. These changes aim to enhance transparency and efficiency. Key updates include specifying additional 'evidence of default' for initiating insolvency, defining public announcements as financial information, and requiring electronic submission of creditor lists. Furthermore, resolution professionals must now inform claimants about debt payment principles under approved plans, and liquidators are empowered to assign or transfer 'not readily realisable assets' to expedite closure. Creditors can also assign or transfer their debts.

Insolvency and Bankruptcy Board of India No. IBBI/PR/2020/16 13thNovember, 2020 Press Release The Insolvency and Bankruptcy Board of India amends Regulations relating to corporate insolvency proceedings The Insolvency and Bankruptcy Board of India (IBBI) notified the following Amendment Regulations, 2020 today: (a) the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2016 (b) the Insolvency and Bankru

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FAQ :

The amendments cover regulations relating to corporate insolvency proceedings, including the insolvency resolution process for corporate persons and the liquidation process, as well as information utilities.

Besides records from information utilities, applicants can now submit a certified copy of entries in a banker's book or an order from a court or tribunal that has adjudicated on the non-payment of a debt.

The IBBI has specified that a public announcement made under the Code is considered financial information. Information Utilities are now mandated to disseminate these announcements to their registered users who are creditors.

Interim Resolution Professionals (IRPs) and Resolution Professionals (RPs) are now required to submit the list of creditors on an electronic platform for dissemination on the IBBI's website, improving transparency.

Liquidators can now assign or transfer 'not readily realisable assets' to any person in consultation with the stakeholders' consultation committee to facilitate quicker closure of the liquidation process.

Yes, the amended regulations enable a creditor to assign or transfer the debt due to it to any other person, in accordance with applicable laws.

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Notification No : No. IBBI/PR/2020/16
Published in LAW
Source : https://ibbi.gov.in//uploads/press/2020-11-13-220539-eb6yn-50277513bcc7d94092ce4ee2b6591aad.pdf

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