+
IBBI Proposes Rule Changes for Insolvency Resolution Process
Real Estate

IBBI Proposes Rule Changes for Insolvency Resolution Process

The Insolvency and Bankruptcy Board of India (IBBI) has recently proposed changes to the rules governing the insolvency resolution process. These proposed changes aim to streamline and improve the effectiveness of the existing framework.

One of the key changes proposed by the IBBI is the introduction of a pre-packaged insolvency resolution process. This process allows for the resolution of distressed companies outside the traditional insolvency framework, providing a faster and more cost-effective resolution for all stakeholders involved. The proposal suggests that pre-packaged resolution plans can be submitted directly to the adjudicating authority, reducing the time and effort required for resolution.

Another proposed change is the enhancement of the role played by the resolution professionals (RPs) in the resolution process. The IBBI suggests that RPs should have the power to monitor the progress of the resolution plan and take necessary actions to ensure compliance. These proposed changes aim to strengthen the role of RPs and improve the efficiency of the resolution process.

The IBBI also proposes changes to the committee of creditors (CoC) and the voting thresholds required for the approval of a resolution plan. The proposal suggests that the CoC should have the authority to determine the order of preference in the distribution of proceeds, providing more flexibility and transparency in the resolution process. Additionally, the IBBI proposes to lower the voting threshold required for the approval of a resolution plan, making it easier for plans to be accepted.

In an effort to increase transparency and accountability, the IBBI also proposes changes to the reporting requirements for resolution professionals. The proposal suggests that RPs should submit a detailed report to the IBBI at various stages of the resolution process, providing greater visibility into the progress made and the strategies employed.

These proposed changes by the IBBI aim to address some of the challenges faced by the current insolvency resolution process, including delays and conflicts of interest. If implemented, these changes have the potential to significantly improve the efficiency and effectiveness of the process, benefiting all stakeholders involved.

It is important to note that these proposed changes are still subject to public comments and feedback. The IBBI is open to suggestions and is expected to take into account all viewpoints before finalizing the amended rules.

The Insolvency and Bankruptcy Board of India (IBBI) has recently proposed changes to the rules governing the insolvency resolution process. These proposed changes aim to streamline and improve the effectiveness of the existing framework. One of the key changes proposed by the IBBI is the introduction of a pre-packaged insolvency resolution process. This process allows for the resolution of distressed companies outside the traditional insolvency framework, providing a faster and more cost-effective resolution for all stakeholders involved. The proposal suggests that pre-packaged resolution plans can be submitted directly to the adjudicating authority, reducing the time and effort required for resolution. Another proposed change is the enhancement of the role played by the resolution professionals (RPs) in the resolution process. The IBBI suggests that RPs should have the power to monitor the progress of the resolution plan and take necessary actions to ensure compliance. These proposed changes aim to strengthen the role of RPs and improve the efficiency of the resolution process. The IBBI also proposes changes to the committee of creditors (CoC) and the voting thresholds required for the approval of a resolution plan. The proposal suggests that the CoC should have the authority to determine the order of preference in the distribution of proceeds, providing more flexibility and transparency in the resolution process. Additionally, the IBBI proposes to lower the voting threshold required for the approval of a resolution plan, making it easier for plans to be accepted. In an effort to increase transparency and accountability, the IBBI also proposes changes to the reporting requirements for resolution professionals. The proposal suggests that RPs should submit a detailed report to the IBBI at various stages of the resolution process, providing greater visibility into the progress made and the strategies employed. These proposed changes by the IBBI aim to address some of the challenges faced by the current insolvency resolution process, including delays and conflicts of interest. If implemented, these changes have the potential to significantly improve the efficiency and effectiveness of the process, benefiting all stakeholders involved. It is important to note that these proposed changes are still subject to public comments and feedback. The IBBI is open to suggestions and is expected to take into account all viewpoints before finalizing the amended rules.

Next Story
Infrastructure Transport

Mumbai–Pune Link to Bypass Ghat Ready by December

A 13-kilometre connector on the Mumbai–Pune Expressway, designed to bypass the congested and accident-prone Lonavala–Khandala ghat section, is set to be completed by December. The Maharashtra State Road Development Corporation (MSRDC), overseeing the project, has confirmed that construction is in its final stages.Currently, the 19-kilometre stretch between Khopoli and the Sinhgad Institute forces vehicles to navigate narrow, winding ghat roads. Once operational, the new link will allow motorists to skip this stretch entirely, easing congestion and improving safety.Handling around 75,000 ve..

Next Story
Infrastructure Transport

Metro Line 4, Flyover Open to Ease Thane Traffic

In a bid to streamline transport and ease mounting congestion, the Maharashtra government has inaugurated two major infrastructure projects in Mumbai: Metro Line 4 and Phase 1 of the Kasarvadavli Flyover. The newly opened 800-metre flyover is now operational, offering commuters faster transit between Thane and Gaimukh.Transport Minister Pratap Sarnaik formally opened the flyover, which lies parallel to the under-construction Metro Line 4 corridor. Built to decongest the heavily trafficked Ghodbunder junction, the structure enables seamless movement for vehicles bypassing the bottleneck.Designe..

Next Story
Resources

Pidilite Industries Marks World Youth Skills Day by Strengthening Skilling Initiatives

On the occasion of World Youth Skills Day, Pidilite Industries, a leading manufacturer of adhesives, sealants, construction chemicals and art materials, reaffirmed its commitment to youth empowerment through vocational training and digital tools. With the construction and real estate sectors in India expected to generate 30 million jobs by 2030, skilling is seen as a critical enabler for the country’s growth. Pidilite has trained over one lakh youth through its various initiatives, spanning trades such as plumbing, waterproofing, woodworking, construction, organic farming, interior desi..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?