MCA has made a few amendments in Insolvency & Bankruptcy Board of India Regulations, 2017 inorder to fast track the insolvency resolution process for corporate persons. A press release for the same has been issued on 8th February,2018 and it is already effective after theirpublication in the Official Gazette of India.
Following amendments are made :

• Resolution Professional shall appoint Registered Valuers who willdetermine the fair value as well as the liquidation value of the Corporate Debtor.After receiving resolution plan; the Resolution Professional will provide the fair value as well as the liquidation value in electronic form to each member of the Committee of Creditors. All including the Resolution Professional & Registered Valuers should adhere to maintain confidentiality of the fair value and the liquidation value of the Corporate Debtor.
• OnceResolution Professional is appointed & has received the undertaking ofconfidentiality. He must submit theinformation memorandum (electronic form)to each member of the Committee of Creditorswithin two weeks from date of appointment orlatest by the date of invitation of resolution plan.
• Resolution Professional has to issue an invitationincluding the evaluation matrix, to the prospective resolution applicants.He may modify the invitation as well as the evaluation matrix if needed.And theprospective resolution applicants get at least 15 days from the issue of invitation or modification for submitting the resolution plans. For submitting resolution plans, Resolution Professional gets at least8 days from the issue of evaluation matrix or modification, whichever is later. Even an abridged invitation can be made available on website of the corporate debtor (if any)/ other website if IBBI designates for the above purpose.
• Prospective resolution applicants shall note that their resolution plan shall include the information relating to sources of fund required for covering the cost of
  • Insolvency resolution process costs.
  • Liquidation value due to Operational Creditors
  • Liquidation value due to dissenting financial creditors
• Resolution Plan shall provide for the measures formaximization of value of its assets by way of
  • 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
  • Change in portfolio of goods or services produced or rendered
  • Change in technologyused by the Corporate Debtor
• Resolution Professional will have to submit the Resolution Plan the Adjudicating Authority which has been approved by the Committee of Creditors. This needs to be submitted at least 15 days before the expiry of the maximum period permitted for the completion of the fast track Corporate Insolvency Resolution Process.

The Insolvency and Bankruptcy Board of India (IBBI) has amended the Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 yesterday.
According to the Amendments,

1. The Resolution Professional shall appoint Registered Valuers to determine the fair value and the liquidation value of the Corporate Debtor. After the receipt of Resolution Plans, the Resolution Professional shall provide the fair value and the liquidation value to each member of the Committee of Creditors in electronic form, on receiving a confidentiality undertaking. The Resolution Professional and Registered Valuers shall maintain confidentiality of the fair value and the liquidation value.

2. The Resolution Professional shall 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, on receiving confidentiality undertaking.

3. The Resolution Professional shall issue an invitation, including the evaluation matrix, to the prospective Resolution Applicants. He may modify the invitation as well as the evaluation matrix. However, the prospective resolution applicant shall get at least 15 days from the issue of invitation or modification thereof, whichever is later, to submit resolution plans. Similarly, he will get at least 8 days from the issue of evaluation matrix or modification thereof, whichever is later, to submit resolution plans. An abridged invitation shall be available on the web site, if any, of the corporate debtor, and on the web site, if any, designated by the IBBI for the purpose.

4. While the Resolution Applicant shall continue 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 shall specify the amounts payable from resources under the Resolution Plan for these purposes.

5. A Resolution Plan shall provide for the measures,as may be necessary, for insolvency resolution of the Corporate Debtor for maximization of value of its assets. These may include 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, change in portfolio of goods or services produced or rendered by the Corporate Debtor, and change in technology used by the Corporate Debtor.

6. The Resolution Professional shall 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 the fast track Corporate Insolvency Resolution Process.

The Amendments have come into force since yesterday after their publication in the Gazette of India. The Amendments are available atwww.mca.gov.inandwww.ibbi.gov.in.

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DSM/KN

This article is compiled by CA Ankita Khetan. For any further queries either comment in the section below or write to us on contact@studycafe.in

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