To boost CIRP outcomes, IBBI limits change in resolution plan to once

Gives option for a challenge mechanism, curbs discretion of CoC in considering certain resolution plans.

In a move that could improve the timelines and outcomes of the corporate insolvency resolution process (CIRP), the amended regulations have put a limit on the number of times a resolution plan can be modified to one. It has also given the option to the committee of creditors to instead go for a challenge mechanism to enable resolution applicants improve their plans.

The amended regulations notified by the insolvency and bankruptcy board of India (IBBI) also allow the resolution professionals to modify the invitation for expression of interest, just once.

The insolvency regulator has also laid ground for a code