Page 3 - Ibbi

IBBI introduces self-regulatory guidelines for committee of creditors

To ensure their professional competence, the CoC must keep themselves updated with the provisions of the Code, rules, and regulations, according to the guidelines

Resolutions under Insolvency and Bankruptcy Code highest in FY24: Crisil

Recovery for financial creditors, however, declined to 27% compared to 36% in FY23

Can improve recovery rate under IBC to 40%: IBBI chairperson to RPs

In accounting terms, a going concern entity is expected to survive and thrive for at least the next 12 months, even if it is going through insolvency proceedings

IBBI introduces digital forms for monitoring liquidation processes

To ease the compliance burden for insolvency professionals, and enhance the effectiveness of the liquidation process, the IBBI has launched a set of electronic forms under the Insolvency and Bankruptcy Code. These forms are crucial for the liquidation process under the Insolvency and Bankruptcy Code (IBC), as they facilitate systematic and transparent record-keeping and seamless reporting, the insolvency regulator said. The new circular, issued by the Insolvency and Bankruptcy Board of India (IBBI) on June 28, introduces forms LIQ 1 to LIQ 4, covering different stages of the liquidation process. Presently, the IPs submit the details regarding the liquidation process, to the board through emails, which is time-consuming and inefficient, the IBBI said in the circular. LIQ 1 includes details from the commencement of liquidation to the public announcement. Further, LIQ 2 captures information from the public announcement to the progress report, including valuation, sale, and receipts.

IBBI releases liquidation progress report format; seeks stakeholder inputs

The IBBI has issued a new format for the submission of progress reports during liquidation process, as mandated by (liquidation process) norms, and sought stakeholder inputs by July 12. The initiative will ensure a standardised and streamlined approach to reporting, benefitting both insolvency professionals and adjudicating authorities. Also, it will ensure consistency and clarity across all submissions. "To streamline the process and ensure uniformity in the structure of these reports filed by the liquidators before the Adjudicating Authority, it would be beneficial for insolvency professionals (IPs) and the adjudicating authority if there were a standardised format," the Insolvency and Bankruptcy Board of India (IBBI) said. In February this year, IBBI in a circular, mandated that these reports be shared with members of the stakeholders' consultation committee, contingent on a confidentiality agreement. Currently, as per the IBBI's norms, the regulator outlines that the progress .

IBBI proposes amendments to insolvency rules; seeks public comments

The IBBI has proposed amendments to the Insolvency Resolution Process for Corporate Process regulations, to enhance efficiency and reduce costs, and sought stakeholder inputs by July 10. These amendments are expected to enhance the efficiency and transparency of the Corporate Insolvency Resolution Process (CIRP), and benefiting creditors and other stakeholders involved in the CIRP. In a discussion paper released on Wednesday, the Insolvency and Bankruptcy Board of India (IBBI), proposed that the registered valuer should submit a comprehensive valuation report for the corporate debtor as a whole, rather than separate valuations for different asset classes. This proposal seeks to eliminate inconsistencies between the CIRP regulations and the Companies (Registered Valuers and Valuation) Rules. For companies with an asset size of up to Rs 1,000 crore and micro, small and medium enterprises (MSMEs), the board proposes to appoint only one registered valuer for providing the estimates of

IBBI proposes compliance procedures for IPs, seeks stakeholder feedback

The IBBI has proposed changes to the corporate insolvency resolution process (CIRP) forms and compliance framework to reduce compliance burden on insolvency professionals, and sought stakeholders' comments by July 1. These changes will reduce the amount of information and data that insolvency professionals (IPs) need to submit, thereby enhancing efficiency and reducing redundancy. The Insolvency Bankruptcy Board of India (IBBI) has also proposed to remove duplicate submissions and simplification of the reporting process. Under the discussion paper issued on June 10, the IBBI said the proposed changes will "simplify the compliance process by combining various reporting system on IP and IBBI website into a single, centralised IBBI website, eliminating duplication, and making it easier for stakeholders to access and use". The IBBI -- a statutory body functioning under the corporate affairs ministry -- has invited stakeholders to provide comments on the discussion paper by July 1. The

IBBI proposes reducing compliance burden, simplifying forms for RPs

Looks to simplify forms submitted for corporate insolvency resolution process

At 269, NCLT approves record resolutions under IBC in FY24: IBBI data

However, it is still taking 679 days on average to conclude the resolution process, as against the standard timeline of 330 days

After making insolvency process creditor-driven, can IBC address the delays

Experts point out that though the IBBI data reflects a steady rise in the total number of insolvencies admitted, the year-on-year increase does not show a consistent trend

A third of withdrawn insolvency processes fully settled, says IBBI

IBBI said that the credible threat of the code that a company may change hands has changed the behaviour of debtors

Debtors resolving cases before admission under insolvency law: IBBI

Over 27,500 applications for resolution process against corporate debtors have been withdrawn before their admission, with regulator IBBI emphasising that the credible threat of the insolvency law that ownership of debtors might change has changed the behaviour of debtors. These Corporate Debtors (CDs) had an underlying default of Rs 9.74 lakh crore. The Insolvency and Bankruptcy Code (IBC), introduced in December 2016, provides for a time-bound and market-linked resolution of stressed assets. "The credible threat of the Code, that a CD may change hands, has changed the behaviour of debtors. Thousands of debtors are resolving distress in early stages of distress. "They are resolving when default is imminent, on receipt of a notice for repayment but before filing an application, after filing application but before its admission, and even after admission of the application, and making best effort to avoid consequences of the resolution process," the IBBI said in its latest ...

IBBI amends resolution rules: Realty insolvency to be project-wise

Share of top 10 realty deals was 87% of total value of PE investments in first 9 months of FY24 (9MFY24)

IBBI amends norms to increase transparency in insolvency resolution process

Regulator IBBI has amended corporate insolvency resolution process norms, including making it compulsory to have separate accounts for each real estate project undergoing resolution and enabling the creditors' committee to constitute a monitoring panel to oversee implementation of the resolution plan. "With an aim to increase transparency and reduce disputes over valuation-related issues, the amendment provide for explaining the valuation methodology to the members of the CoC (Committee of Creditors) before the computation of estimates," as per the revised norms. The Insolvency and Bankruptcy Board of India (IBBI) also said that fair value may be made part of the information memorandum to foster informed participation in the process. The CoC will also have the freedom to decide not to share such information where such disclosure is not beneficial for the resolution. With respect to real estate projects, the regulator said the CoC can ask for separate resolution plans for each ...

Relief to homebuyers: Allotted houses to stay out of liquidation, says IBBI

12 key changes to overall regulations introduced to ensure transparency

Fin service providers must have regulatory nod for liquidation: IBBI

Liquidators need to ensure that financial service providers have the requisite permission from their respective regulator before commencing voluntary liquidation process under the insolvency law. The Insolvency and Bankruptcy Board of India (IBBI) on Tuesday issued a circular in this regard amid instances of Financial Service Providers (FSPs) commencing voluntary liquidation process without requisite approvals. Under the Insolvency and Bankruptcy Code (IBC), the definition of corporate persons excludes any FSP. FSPs notified by the central government after consulting financial regulators are allowed to undergo a voluntary liquidation process after obtaining prior permission of the appropriate regulator. The requirement is part of the Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority Rules, 2019. According to IBBI, it has been noted that some FSPs have commenced the voluntary liquidation process without notifying the ...

IBBI asks resolution professionals to share reports with creditors, debtors

By sharing reports, which contain evaluations and recommendations for the approval or rejection of the application, the IBBI aims to ensure transparency and informed decision-making

IBBI allows same RP for company and personal guarantor insolvency

The modifications to the IBBI - Bankruptcy Process for Personal Guarantors to Corporate Debtors, Regulations 2019, took effect from January 31

IBBI forms panel of 787 professionals to expedite resolution process

This move by the insolvency regulator aims to avoid delays and preserve asset value amid rising stressed cases

Liquidation share in insolvency cases on the decline, shows IBBI data

As of the months of September 2021, September 2022 and September 2023, around 45 per cent of the total cases admitted into insolvency ended in liquidation