IBC - #SectorUpdates

On 14th June 2022, IBBI amended IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) (Second Amendment) to ease the corporate insolvency resolution process (CIRP) process and bring clarity on contentious issues. Easing of CIRP process and ensure timely completion of IBC resolutions are the main focus of the amendment. Numerous CIRP processes have been delayed due sharing of incomplete information and records by the corporate debtor (CD) leading to unnecessary increase of workload of NCLTs. To ease sharing of information the amendment puts onus on the financial creditor to provide relevant financial information available with them to the resolution professionals (RPs). This would help the RPs to determine a more realistic financial health of a CD. This would undoubtedly be helpful in resolution of CDs. The Amendment is likely to simplify the CIRP Process. As resolution of CDs becomes more streamlined this would consequently lead to better recovery for the banks.

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