Ibbi

Include land authority in CoC for real estate insolvency cases: IBBI

The IBC has seen successful resolution in 46 per cent of cases admitted in the real estate sector as of June 2024, IBBI data shows

IBBI proposes mediation for operational creditors before filing insolvency

The Insolvency and Bankruptcy Board of India (IBBI) has proposed a voluntary mediation mechanism for operational creditors before filing insolvency applications under the IBC norms. The proposal aims to reduce the burden on the Adjudicating Authority (AA), thereby expediting admissions. The recommendation is based on an expert committee report and subsequent suggestions by the Indian Institute of Insolvency Professionals of ICAI (IIIPI). In a discussion paper released on Monday, the insolvency board proposed to introduce mediation as a preliminary step, providing operational creditors an avenue to settle disputes with corporate debtors over matters like contractual disagreements, quality issues, underpayment claims, and set-off demands. The insolvency board noted that in most of the operational creditors-initiated insolvency cases, they are more interested in repayment of money claims rather than admission or resolution of the corporate debtor. According to IBBI, as of April 2024,

IBBI proposes mediation mechanism for operational creditors in IBC

IBBI stated that in most insolvency cases initiated by operational creditors, the creditors are more focused on the repayment of money claims than on admission or resolution of the corporate debtor

IBBI, IBA to launch centralised platform for asset liquidation auctions

Initially, the platform will be deployed in pilot mode, with a full rollout planned at a later date after incorporating improvements based on usage feedback

Lenders have recovered Rs 3.5 trillion under IBC: IBBI Chairperson Mital

Lenders have recovered Rs 3.5 lakh crore through resolution of stressed assets under the insolvency process in the last eight years, a period during which NCLT approved 1,000 resolution plans, IBBI Chairperson Ravi Mital said on Tuesday. The Insolvency and Bankruptcy Code (IBC) provides for a market-linked and time-bound resolution of stressed assets. The National Company Law Tribunal (NCLT) and the Insolvency and Bankruptcy Board of India (IBBI) are key institutions in the IBC ecosystem. In the last two years, NCLT has cleared 450 resolution plans. This accounts for 45 per cent of the 1,000 such plans approved in the last eight years, Mital said at a function to mark the eighth foundation day of the IBBI. According to him, Rs 3.5 lakh crore has been recovered directly by lenders, of which Rs 1 lakh crore was in the last two years. Under the IBC, the recovery is about 84 per cent of the assets' fair value, as per official data. Chief Economic Advisor V Anantha Nageswaran said a ..

IBBI amends rules to enhance creditor representation in insolvency process

The IBBI has amended the Insolvency Resolution Process for Corporate Persons norms to introduce significant changes to enhance creditor representation in the insolvency process. The board notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations 2024 on September 24. "The amendment regulations provide for the appointment of an interim representative who will act as a representative for a class of creditors during the period when the application for appointment of the authorised representative is under consideration of the adjudicating authority for approval," IBBI said in a release. The interim representative will have the same rights and responsibilities as a duly appointed authorised representative, particularly in the meetings of the committee of creditors. This move is aimed at facilitating the effective representation of creditors that are large in number, such as homebuyers, who often face delays

IBBI chief asks insolvency professionals to be transparent to improve bids

IBBI Chairperson Ravi Mital on Tuesday asked insolvency professionals to be as transparent as possible during the resolution process as that will help in improving the bids and reduce haircuts. Speaking at a conference organised by the Indian Institute of Insolvency Professionals of ICAI (IIIPI) in the national capital, he said insolvency professionals and insolvency professional entities are the fulcrum of the insolvency system. While highlighting that the insolvency professionals need to be mindful of time and delays, Mital said, "be as transparent as possible during the bidding process. This will improve bids, reduce haircuts and improve image of the IBC ecosystem," according to a release issued by IIIPI. The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the Insolvency and Bankruptcy Code (IBC).

Kulwant Singh takes charge as Executive Director of regulatory body IBBI

Kulwant Singh, a 1999 batch officer of the Indian Audit and Accounts Service, has taken charge as Executive Director of the Insolvency and Bankruptcy Board of India (IBBI), according to a release. Earlier, Singh has served as the Director General of Audit, East Coast Railway. "Kulwant Singh took charge as Executive Director, Insolvency and Bankruptcy Board of India (IBBI), on 11th September 2024," a release dated September 11 by the IBBI said. Singh has a graduate degree in law. He has completed more than 25 years in various capacities in the office of Comptroller & Auditor General of India (C&AG). He was also posted as Principal Director of Audit in Embassy of India, Washington DC and Director of Audit in High Commission of India, London. Last year in December, IBBI announced that Jithesh John has taken charge as an executive director. Prior to that, IBBI in October had announced that Sandip Garg has assumed charge as a Whole Time Member in the Bankruptcy Board. IBBI is a key

Ibbi guidelines for CoC need monitoring mechanism, say IBC experts

Earlier this month, the insolvency regulator introduced guidelines for CoC that steer the insolvency resolution process to stem the value erosion that occurs due to delays and bring more transparency

Rescued firms 2.5 times those liquidated in realty sector, shows IBBI data

IBC experts feel that despite the positive trend of more resolutions than liquidations in real estate insolvencies under the IBC, several challenges persist

Insolvency Board mandates to provide unique ID to each valuation report

The Insolvency and Bankruptcy Board of India will provide a unique identification number for each valuation report prepared under the insolvency law to ensure authenticity, the board said in a circular on Monday. IBBI is the designated authority for registration, monitoring and development of valuers under the Companies Act, 2013. As per the current practice, Registered Valuer (RV)/ Register Valuers Entity (RVE) submit the valuation reports with or without mentioning any reference number leading to potential issues concerning verification. "In order to ensure authenticity and to have a unique reference number of the valuation reports, it has been decided to provide a Valuation Report Identification Number (VRIN) for each valuation conducted under the Code," the IBBI circular said. This circular applies to all valuation reports dated on or after August 12. Further, the IBBI in consultation with Registered Valuers Organisations has developed an online module which can be accessed ..

IBBI introduces self-regulatory guidelines for committee of creditors

To ensure their professional competence, the CoC must keep themselves updated with the provisions of the Code, rules, and regulations, according to the guidelines

Resolutions under Insolvency and Bankruptcy Code highest in FY24: Crisil

Recovery for financial creditors, however, declined to 27% compared to 36% in FY23

Can improve recovery rate under IBC to 40%: IBBI chairperson to RPs

In accounting terms, a going concern entity is expected to survive and thrive for at least the next 12 months, even if it is going through insolvency proceedings

IBBI introduces digital forms for monitoring liquidation processes

To ease the compliance burden for insolvency professionals, and enhance the effectiveness of the liquidation process, the IBBI has launched a set of electronic forms under the Insolvency and Bankruptcy Code. These forms are crucial for the liquidation process under the Insolvency and Bankruptcy Code (IBC), as they facilitate systematic and transparent record-keeping and seamless reporting, the insolvency regulator said. The new circular, issued by the Insolvency and Bankruptcy Board of India (IBBI) on June 28, introduces forms LIQ 1 to LIQ 4, covering different stages of the liquidation process. Presently, the IPs submit the details regarding the liquidation process, to the board through emails, which is time-consuming and inefficient, the IBBI said in the circular. LIQ 1 includes details from the commencement of liquidation to the public announcement. Further, LIQ 2 captures information from the public announcement to the progress report, including valuation, sale, and receipts.

IBBI releases liquidation progress report format; seeks stakeholder inputs

The IBBI has issued a new format for the submission of progress reports during liquidation process, as mandated by (liquidation process) norms, and sought stakeholder inputs by July 12. The initiative will ensure a standardised and streamlined approach to reporting, benefitting both insolvency professionals and adjudicating authorities. Also, it will ensure consistency and clarity across all submissions. "To streamline the process and ensure uniformity in the structure of these reports filed by the liquidators before the Adjudicating Authority, it would be beneficial for insolvency professionals (IPs) and the adjudicating authority if there were a standardised format," the Insolvency and Bankruptcy Board of India (IBBI) said. In February this year, IBBI in a circular, mandated that these reports be shared with members of the stakeholders' consultation committee, contingent on a confidentiality agreement. Currently, as per the IBBI's norms, the regulator outlines that the progress .

IBBI proposes amendments to insolvency rules; seeks public comments

The IBBI has proposed amendments to the Insolvency Resolution Process for Corporate Process regulations, to enhance efficiency and reduce costs, and sought stakeholder inputs by July 10. These amendments are expected to enhance the efficiency and transparency of the Corporate Insolvency Resolution Process (CIRP), and benefiting creditors and other stakeholders involved in the CIRP. In a discussion paper released on Wednesday, the Insolvency and Bankruptcy Board of India (IBBI), proposed that the registered valuer should submit a comprehensive valuation report for the corporate debtor as a whole, rather than separate valuations for different asset classes. This proposal seeks to eliminate inconsistencies between the CIRP regulations and the Companies (Registered Valuers and Valuation) Rules. For companies with an asset size of up to Rs 1,000 crore and micro, small and medium enterprises (MSMEs), the board proposes to appoint only one registered valuer for providing the estimates of

IBBI proposes compliance procedures for IPs, seeks stakeholder feedback

The IBBI has proposed changes to the corporate insolvency resolution process (CIRP) forms and compliance framework to reduce compliance burden on insolvency professionals, and sought stakeholders' comments by July 1. These changes will reduce the amount of information and data that insolvency professionals (IPs) need to submit, thereby enhancing efficiency and reducing redundancy. The Insolvency Bankruptcy Board of India (IBBI) has also proposed to remove duplicate submissions and simplification of the reporting process. Under the discussion paper issued on June 10, the IBBI said the proposed changes will "simplify the compliance process by combining various reporting system on IP and IBBI website into a single, centralised IBBI website, eliminating duplication, and making it easier for stakeholders to access and use". The IBBI -- a statutory body functioning under the corporate affairs ministry -- has invited stakeholders to provide comments on the discussion paper by July 1. The

IBBI proposes reducing compliance burden, simplifying forms for RPs

Looks to simplify forms submitted for corporate insolvency resolution process

At 269, NCLT approves record resolutions under IBC in FY24: IBBI data

However, it is still taking 679 days on average to conclude the resolution process, as against the standard timeline of 330 days