INSOLVENCY AND BANKRUPTCY CONSULTANCY
Corporate Insolvency is a situation when an organization is unable to meet it’s outstanding financial, operational or any other debt/liability towards its lenders and suppliers as it becomes due as per agreement. In such case, Corporate Debtor (to whom money is receivable) has to option to file Insolvency petition against the Corporate Creditor (Who is liable to pay). Corporate debtors can recover money through a very transparent and time-bound process.
Hence it is very important for all parties to have proper knowledge of insolvency process. Till Dec 19, as per fair estimate, bank are able to recover more than Rs 90000 Crores from Bad Accounts.
Therefore, every person to whom money is due, can approach NCLT for insolvency process.
A] Process of Insolvency :
The following companies will have to adopt IND-AS for financial statements from the above mentioned date: –
Notice to Corporate Debtors for dues
If money is not paid in the time limit, application to NCLT
Once the application is admitted, Interim Insolvency Professional (IRP) shall be appointed.
IRP shall collect necessary claims, information, form Committee of Creditors and draft a resolution plan.
Appointment of Resolution Professional who shall do all necessary actions for all creditors.
If Creditors and NCLT approve final plan, then Resolution professional shall manage and implement the same. If not approved, then the same Company shall be liquidated.
B] This entire process is of only 180 days to 270 days as per law
a. For Corporate Debtors (To whom money is receivable)
Exploring the possibility of action under Insolvency Law against Corporate Debtors.
Drafting of Notice
Drafting of application for Insolvency to NCLT
Representing Corporate Creditor in NCLT hearing.
To provide all kind of legal and professional support
b. For Corporate Creditors (Who is liable to pay money)
Advisory on voluntary insolvency process.
Advisory on notices/claim received under Insolvency law.
Advisory on the preparation of the resolution plan.