Insolvency Services
Insolvency Services
About the Insolvency and Bankruptcy Code
Across the country, numerous financial and operational creditors are facing delayed payments from debtors, financial institutions, and real estate companies, with little to no willingness from these entities to settle their dues.
In response to this, the Government of India introduced the Insolvency and Bankruptcy Code (IBC) in 2016. The IBC enables both operational and financial creditors to approach the National Company Law Tribunal (NCLT) for recovering their dues, through an insolvency resolution process. This process follows a time-bound procedure aimed at maximizing asset value, promoting entrepreneurship, ensuring credit availability, and balancing the interests of all stakeholders, including a redefined order of priority for government dues. Since the enactment of the code, a significant number of cases have been resolved, leading to the recovery and reintegration of blocked funds into the system.
Our Services
Introduction to Interim Resolution Professional (IRP)
Upon the appointment of an Interim Resolution Professional (IRP), our responsibilities include:
- Making the public announcement of the Corporate Insolvency Resolution Process (CIRP).
- Collecting claims from creditors, including financial, operational, workmen, employees, and others.
- Forming the Committee of Creditors (CoC).
- Issuing notices and conducting the first CoC meeting.
- Performing any other acts required as defined under the Insolvency and Bankruptcy Code (IBC), 2016.
Introduction to Resolution Professional (RP)
Upon the appointment of a Resolution Professional (RP), our role includes:
- Appointing a valuer to determine the fair value and liquidation value of the corporate debtor’s assets.
- Preparing the Information Memorandum (IM).
- Inviting resolution applicants to submit resolution plans along with an evaluation matrix.
- Conducting CoC meetings for financial creditors as required for various approvals under the IBC.
- Examining and analyzing each resolution plan in compliance with the IBC, including its implementation and supervision.
- Filing and defending any applications with NCLT/NCLAT related to the company.
- Presenting the resolution plan to CoC for approval and submitting it to the Adjudicating Authority.
- Performing any other required actions to implement the approved resolution plan as per the IBC, 2016.
Liquidator
Upon the appointment of a Liquidator, the responsibilities include:
- Making the public announcement of the liquidation of the corporate debtor.
- Collecting and verifying claims from creditors.
- Taking custody and control of all assets of the corporate debtor, forming the liquidation estate.
- Selling immovable and movable property and actionable claims via public auction or private contract, and preparing an asset sale report.
- Engaging professional assistance if required for carrying out duties.
- Distributing proceeds as per the IBC, 2016 provisions.
- Initiating or defending any legal actions on behalf of the corporate debtor.
- Applying to the adjudicating authority for necessary orders or directions for liquidation.
- Performing other duties as mandated by the Insolvency and Bankruptcy Board of India (IBBI).
Voluntary Liquidation
In voluntary liquidation, our role includes:
- Assisting in the necessary compliance procedures for initiating voluntary liquidation under the IBC, 2016.
- Making the public announcement of voluntary liquidation.
- Collecting and verifying creditor claims (financial, operational, workmen, employees, etc.).
- Preparing a list of stakeholders.
- Distributing assets to stakeholders in accordance with the IBC provisions.
- Preparing distribution lists based on asset allocation.
- Issuing necessary reports such as Preliminary, Status, and Final Reports.
- Applying to NCLT for dissolution and filing the dissolution order with the ROC.
- Performing other required activities as per the IBC, 2016.
Consultation to Issue Demand Notice
We assist in the preparation and issuance of demand notices for operational creditors.
Documents Required to Issue Demand Notice
- Demand Notice (Forms 3 and 4 under IBBI Rules).
- Company’s ledger account.
- Copy of invoices showing proof of transactions.
- Purchase/work order issued.
- Proof of supply and delivery of goods/services.
- Communication (including emails) between parties.
- Bank statements of the creditor.
- Affidavit from the operational creditor (Section 9 (3) (b) – IBBI Rules).
- Acknowledgment of the transaction between parties.
- Legal notice copy served by the creditor.
- Optional: Bank certificate (Section 9 of IBBI Rules).
Other Services
- Filing applications under the Insolvency and Bankruptcy Code, 2016 for:
- Financial Creditors.
- Operational Creditors.
- Corporate Applicants.
Services to Resolution Applicants
- Submitting an expression of interest to the concerned Resolution Professional.
- Preparing a resolution plan in compliance with the IBC, 2016.
- Presenting and negotiating the resolution plan with the Resolution Professional and CoC.
- Arranging funding for the Resolution Plan.
