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 before issue of invitation for EoI. 90% voting share of CoC required to approve it.

ii. Where the appointment of RP is delayed, the IRP shall perform the functions of the RP from the 40th day of the insolvency commencement date till a resolution professional is appointed.

iii. Few modifications regarding notice and voting window of meeting of CoC.

iv. Also the manner of appointment of authorised representative of creditors in cases where corporate debtor has different classes of creditors having at least ten creditors in each class

v. Time limit for RP to determine and apply for relief for preferential transactions, undervalued transactions, extortionate transactions or fraudulent transactions

vi. The resolution professional shall publish an invitation for EoI by the 75th day from the insolvency commencement date. Any EoI received after the specified time shall be rejected. Timeline for issuance of a provisional list of prospective resolution applicants specified

vii. The resolution professional shall issue the information memorandum, the evaluation matrix and the request for resolution plans, within five days of issue of the provisional list to the prospective resolution applicants and allow at least 30 days for submission of resolution plans. Other details with regard to request for resolution plans specified.

From: Avishek Gupta, Optimus Resolution