November 25, 2019
Summary of Regulations issued by IBBI on 20/11/2019 which shall come into effect from 01/12/2019:
1. Detailed procedure on Bankruptcy Process for Personal Guarantors to Corporate Debtors introduced though Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019:
Following the introduction of procedure for application to adjudicating authority for Bankruptcy Process for Personal Guarantors to Corporate Debtors, detailed procedure with respect to appointment of bankruptcy trustees, conduct of meetings and distribution of realised proceeds have been notified through the aforesaid regulation. Formats for Written Consent to act as Bankruptcy Trustee, Appointment of Proxy for voting on behalf of the creditor have been specified in the said notification along with schedules for Payment to be made to Bankruptcy Trustee and for Sale of Assets through Auction/Private Sale.
2. Detailed procedure on Insolvency Resolution Process for Personal Guarantors to Corporate Debtors introduced though Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019:
Following the introduction of procedure for application to adjudicating authority for Insolvency Process for Personal Guarantors to Corporate Debtors, detailed procedure with respect to appointment of insolvency resolution professionals, conduct of meetings and devising of repayment plan have been notified through the aforesaid regulation. Formats for Written Consent to act as Resolution Professional, Submission of Claim by Creditors, Appointment of Proxy for voting on behalf of the creditor have been specified in the said notification.
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