Further to the promulgation of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 on 6 June 2018 (“2018 Ordinance”), the Insolvency and Bankruptcy Board of India (“IBBI”) has substantially amended the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”) vide the IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2018, dated 3 July 2018 (“CIRP Amendment”) (available here).
The key highlights of the CIRP Amendment are:
- timelines provided for various activities during the corporate insolvency resolution process (“CIRP”), including setting out the timeline for submission of claims, constitution of committee of creditors (“COC”), calling COC meetings, voting by members of COC, release of invitation of expression of interest (“EOI”), information memorandum (“IM”), evaluation matrix (“EM”), request for resolution plan (“RFRP”);
- mechanism provided for withdrawal of application;
- mechanism provided for appointment of authorised representative where there is a class of financial creditors;
- identification and determination of preferential transactions, undervalued transactions, extortionate transactions or fraudulent transactions by the resolution professional in a time bound manner;
- key demonstrative factors for a resolution plan;
- disclosures and declarations by prospective resolution applicants;
- model timelines for completion of CIRP;
- new / revised forms provided for public announcement, submission of claims by financial creditors, EOI, written consent provided for the resolution professional, authorised representative, submission of claims by financial creditors in a class, compliance certificate to be submitted by the resolution professional for approval of the resolution plan.
We have attached herewith a brief snapshot and summary of the key amendments along with the model timelines proposed for the CIRP.