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The Four Pillars of the Insolvency and Bankruptcy Code, 2016 (IBC), is a legislative framework for corporate debtors’ insolvency, bankruptcy, or liquidation. This framework consists of four pillars that have important roles during the corporate insolvency resolution process (CIRP). In this blog, we will delve into the four pillars of this institutional infrastructure and understand […]
Link between section 230 of the Companies Act and IBC are important legislations that have a bearing on insolvency, restructuring, and other matters. Although the aims of both are different in their scope and processes, they are similar in their end goal, to restructure companies and avoid bankruptcy while balancing the interests of all stakeholders. […]
During the resolution process, an essential element is a public announcement. Only after the Public Announcement in the IBC Process of the initiation of the corporate insolvency resolution process and the call for submission of the creditor’s claims, can the moratorium period officially begin. What is a Public Announcement in CIRP? Public notice is a […]
The core of the success of implementing insolvency laws is the concept of valuations. These Valuation Experts have an important role in determining the fair market of assets and liabilities during the corporate insolvency resolution process (CIRP) and are calculated and analysed by valuation experts. Overview of the IBC Process When the corporate debtor faces […]
The Insolvency and Bankruptcy Code, 2016 consolidates the previously fragmented insolvency legal system. Under this framework, Authorised Representative under IBC to represent the stakeholders during the resolution process. The primary objective of appointing an authorised representative is to ensure the interests of the creditors are represented throughout the insolvency process. Hence, authorised representatives have an […]
All stakeholders, including NGOs in Insolvency Cases (non-governmental organizations), have an important role in insolvency matters. A non-profit or a charitable company is considered a section 8 company, incorporated under the Companies Act, 2013 that has defaulted the debt or payment of services availed by them to promote its objectives. When such a company faces […]
Companies will go through the insolvency process only when they are under financial duress. In today’s industry this has become often due to the effects of trade disputes, social disruptions, political uncertainties, etc, and not only because of bad management. Insolvency risk is the possibility that a company may be unable to meet its payment […]
Corporate insolvency is the state in which a company is unable to pay its debts when they become due because of several reasons, including cash flow issues and excessive debt. The efficiency of the corporate insolvency resolution process (CIRP) depends on the actions of the stakeholders. The Insolvency and Bankruptcy Board of India (IBBI) regulates […]
When a corporate debtor faces financial distress they undergo the insolvency process. If this process is not successful because the debtor and its unsecured creditors are not able to reach a viable repayment plan or the National Company Law Tribunal decides that the corporate debtor should be liquidated, the liquidation process commences under the Insolvency […]
When a corporate debtor and its creditors are involved in the resolution process under the Insolvency and Bankruptcy Code, 2016 (hereon forward known as “the Code”), it becomes necessary to have effective Communication Strategies for Creditors During a Bankruptcy to manage the complexity of the situation. Under the Code, communication is implicitly mentioned in its […]
