New Delhi: Looking to increase transparency in the summons, IBBI has changed the rules for the corporate resurrection process where professional resolutions will be asked to provide details about their opinions about avoidance transactions related to corporate debtors.
The Council of Bankruptcy and Bankruptcy (IBBI) has changed the Council of Bankruptcy and Bankruptcy (the process of completing bankruptcy for corporate regulations).
Official releases on Wednesday said the amendment to the regulation aims to improve “discipline, transparency, and accountability in the company’s bankruptcy process”.
Professional Resolution is the BEA to find out whether corporate debtors (CDs) have been subject to avoidance transactions, namely, preferential transactions, undervalued transactions, too high credit transactions, trade and trade trading, and submitting applications with authority searches for the appropriate assistance.
This is not only a claw back the lost value in the transaction increases the possibility of reorganizing CD through a resolution plan, but also the disintegration of the transaction prevents stress to the CD.
“For effective monitoring, this amendment requires Rp to Form CIRP 8 files on the electronic board platform, sucking details of opinions and determination in connection with avoidance transactions,” the broadcast said.
IBBI has issued the format of the CIRP 8 form and needs to be submitted with respect to each CIRP ongoing or starting on or after July 14.
With amended regulations, CIRP which conducts professional bankruptcy must also reveal all previous names and registered office addresses (ES) has changed in two years before the start of bankruptcy along with the current name and address of the registered CD office, in all communications and notes.
CIRP refers to the process of completing the bankruptcy.
Amendment takes into account the possibility where the CD may have changed its name or registered office address before the bankruptcy process.
In such cases, stakeholders may be difficult to connect with new names or registered office addresses and consequently failed to participate in CIRP.
Under bankruptcy regulations, professional temporary resolutions or professional resolution can appoint any professional, including registered assessors, to help him let go of his duties in conducting CIRP.
“Amendments to give that IRP / Rp can appoint a professional, in addition to registered assessments, if he argues that the service from the professionals is needed and the service is not available with a CD.” The appointment must be carried out by the length of the arm to follow the objective and transparent process.
Invoices for fees will be raised in the name of professionals and paid to their bank account, “said the release.
Amendments have come into force starting July 14.
IBBI is the main institution in implementing bankruptcy and bankruptcy code (IBC).