Overview and Background:
- In this article the authors have analysed the practicability of an amendment1 which has been made to the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations“), which introduced Regulation 39(1A)(a)2 (“Regulation“), which prescribes that a resolution professional (“RP“) can permit only one modification to a resolution plan, provided that the request for resolution plan (“RFRP“) allows for such modification. The question is whether limiting the number of modifications to just one will be sufficient for getting an optimum value for a corporate debtor (“CD“) and whether the committee of creditors (“CoC“) can require more than one modification to a resolution plan.
- Prior to introduction of the Regulation, there was no specific legislation on the number of modifications which could be made to a resolution plan. A cap has been introduced with a view to avoid delays in the corporate insolvency resolution process (“CIRP“) and for ensuring adherence to timelines for CIRP prescribed under Insolvency and Bankruptcy Code, 2016 (“Code“).
Please click here to read the full article by Aditi Sehgal and Ron Joy published in Mondaq.
Aditi specialises in banking & finance and insolvency. She has extensive experience in domestic and cross border debt transactions including syndicated lending (secured & unsecured), debt capital markets, real estate financing, project finance, structured finance, acquisitions, cross border investments, overseas direct investments, external commercial borrowings, listed and unlisted corporate bonds/ non-convertible debentures (private placement) and debt restructuring.