Insolvency professionals can be crucial in resolution process: Report

Insolvency professionals can play a crucial role in the pre and post-Corporate Insolvency Resolution Process stages, according to a report.

The report by the Indian Institute of Insolvency Professionals of ICAI (IIIPI) also highlighted various methods and processes to diagnose corporate distress at an early stage and suggested interventions to mitigate insolvency processes.

Exploring the advantages of addressing stress early, the report -- Roles of Insolvency Professionals Across Insolvency Value Chain from Incipient Stage till Post-Resolution Stage -- delved into areas to identify and control the initial signs of distress, providing valuable insights for effective intervention.

It also underscores the importance of addressing stress early to prevent the escalation of financial difficulties, positioning companies for long-term success.

"This report will help the Insolvency Professionals (IPs) to manage the stress in companies at both, pre and post CIRP stages as they bring specialised expertise and experience within the scope of law and regulations as envisaged under the IBC," Ashok Haldia, Chairman, IIIPI-Board, said.

IIIPI is promoted by the Institute of Chartered Accountants of India. It is the largest frontline regulator under Insolvency and Bankruptcy Code in the country.