Corporate Insolvency and Restructuring
The Central Government of India introduced the Insolvency and bankruptcy code 2016, in India to create a time bound processes for insolvency resolution of corporate persons, partnership firms and individuals for maximization of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interest of all the stakeholders. If insolvency cannot be resolved, the assets of the borrowers may be sold to repay creditors.
The Insolvency and Bankruptcy Board of India (IBBI) was established on 1.10.2016 under the Insolvency and Bankruptcy, Code 2016 for implementation of the Code and regulates a profession as well as processes such as Insolvency Professional (IPs), Insolvency professional Agency (IPAs) and Information Utilities (IUs). It writes and enforces rules for processes, namely Corporate insolvency resolution, Corporate liquidation, individual insolvency resolution and individual bankruptcy under the code.
The National Company Law Tribunal (NCLT) adjudicate insolvency resolution for companies. The Debt Recovery Tribunal (DRT) adjudicate insolvency resolution for individuals.
The Insolvency and Bankruptcy, Code 2016 creates time-bound processes for insolvency resolution of companies and individuals. These resolve process will be completed within 180 days with further period of 90 days. If insolvency cannot be resolved, the assets of the borrowers may be sold to repay creditors.
That this code shall not apply to corporate persons who are regulated financial service providers such as Banks, Financial institutions and Insurance Companies.
BAVM LEGAL has an extensive practice in Insolvency related litigation. With a dedicated team of Advocates, the Firm has the expertise, experience and capacity to provide a complete range of professional services.
The Firm has experience in all aspects right from preparation, drafting, filing to finally defending and challenging in Courts/ Tribunals etc.
Our clientele consists from both private sectors and individuals, besides foreign clients. This add variety to the Firm’ s experience and gives it a unique edge.
As a brief our Restructuring & Insolvency practice includes as following:
Advice and assistance in implementing restructuring through the formal court or tribunal process, including the formulation of strategies in line with the legal and legal representation in courts and tribunals
Advice on the Insolvency and Bankruptcy Code, 2016 including the restructuring and insolvency process contemplated therein.
Advice and assistance in drafting, negotiating and finalizing relevant transaction documents, including applications, petitions and resolutions.
Advice and assistance in the liquidation process available to debtors under the legal, regulatory and policy framework, including the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016.
Advice and assistance in structuring and implementing an exit strategy for investors from stressed assets, including under a strategic sale, demerger, slump sale and auction.
Drafting, negotiating and finalizing relevant transaction documents.
Advice and assistance to directors and key managerial personnel on their liabilities and obligations arising out of a restructuring and formal and informal insolvency processes.
