Recently, Regulation 39(1A)(a) (“Regulation”) has been introduced into the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”), 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 practicable 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.
Value maximization; role of CoC and negotiations with prospective resolution applicants (“PRA”)
Please click here to read the full article by Aditi Sehgal and Ron Joy published in ET Legal world.
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.