The Insolvency and Bankruptcy Board of India (IBBI) on February 6, 2018 amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
Here are the amendments made to the IBBI Regulations:
Appointment of two registered valuers: The Resolution Professional has to appoint two registered valuers to determine the fair value and the liquidation value of the corporate debtor. After the receipt of resolution plans, the resolution professional needs to provide the fair value and the liquidation value to each member of the committee of creditors in electronic form, on receiving a confidentiality undertaking.
Submission of information memorandum in electronic form: The Resolution Professional has to submit the information memorandum in electronic form to each member of the committee of creditors within two weeks of his appointment as resolution professional and to each prospective resolution applicant latest by the date of invitation of resolution plan, after receiving confidentiality undertaking.
Invitation and evaluation matrix: The Resolution Professional will issue an invitation including the evaluation matrix to the prospective resolution applicants. He can modify the invitation as well as the evaluation matrix. The prospective resolution applicant will get at least 30 days from the issue of invitation or modification thereof, whichever is later, to submit resolution plans. Similarly, he will get at least 15 days from the issue of evaluation matrix to submit resolution plans.
Specification of sources of funds: While the Resolution Applicant has to specify the sources of funds that will be used to pay insolvency resolution process costs, liquidation value due to operational creditors and liquidation value due to dissenting financial creditors, the committee of creditors will also specify the amounts payable from resources under the resolution plan for these purposes.
Detailed Resolution Plan: A Resolution Plan will provide the measures for insolvency resolution of the corporate debtor for maximization of value of assets. These measures can be reduction in the amount payable to the creditors, extension of a maturity date or a change in interest rate or other terms of a debt due from the corporate debtor and change in portfolio of goods or services produced or rendered by the corporate debtor.
Submission of resolution plan: The Resolution Professional is required to submit the resolution plan, approved by the committee of creditors to the Adjudicating Authority, at least 15 days before the expiry of the maximum period permitted for the completion of corporate insolvency resolution process.
When: 6 February 2018