The Insolvency and Bankruptcy Board of India has amended the regulations on the insolvency resolution process for corporate persons, an official release said here on Wednesday.
As per the revised framework, two registered valuers shall be appointed 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," said the Ministry of Corporate Affairs release.
The resolution professional and registered valuers shall maintain confidentiality of the fair value and the liquidation value, it added.
Further, the resolution plan approved by the committee of creditors should be submitted to the adjudicating authority "at least 15 days before the expiry of the maximum period permitted for the completion of the corporate insolvency resolution process".
It also said: "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."
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, it said.
The committee of creditors shall specify the amounts payable from resources under the resolution plan for these purposes.
"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," it added.
According to the ministry, the amendments, approved by the IBBI on Tuesday, come into force from Wednesday.
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