Ashish Sharma’s Post

INDIA TODAY 8TH APRIL 2024 GO FIRST AIRLINE GIVEN EXTENSION FOR RESOULTION PLAN BY NCLT UPTO 3RD JUNE 2024 WHICH DOWN SHUTTER LAST YEAR ON 2ND MAY 2023 The National Company Law Tribunal (NCLT) on Monday approved another 60-day extension to the bankrupt Go First airline to complete its corporate insolvency resolution process (CIRP). The extension will be effective till 3 June, and has been allowed keeping in mind the interest of stakeholders, as per the NCLT. India's insolvency laws mandate completion of a corporate resolution process in 180 days, extendable by another 90 days. However, it must be completed in no more than 330 days in total. A previous extension, from 4 February to 4 April, exhausted the 330-day deadline to complete the resolution process. However, under exceptional circumstances, the NCLT agreed to give Go First another 60 days, as the resolution plans were nearing completion. https://lnkd.in/grBZFnJ3

Here is a concise and descriptive outline of the Corporate Insolvency Resolution Process (CIRP) timeline: *Phase 1: Initiation (0-30 days)* - Day 1: Admission of CIRP application - Day 3: Appointment of Interim Resolution Professional (IRP) - Day 14: Submission of claims by creditors - Day 21: Verification of claims - Day 30: Constitution of Committee of Creditors (CoC) *Phase 2: Resolution Planning (30-180 days)* - Day 30-60: Invitation for Expression of Interest (EOI) and Information Memorandum - Day 60-90: Submission of resolution plans - Day 90-120: Evaluation of resolution plans - Day 120-150: Negotiation and revision of resolution plans - Day 150-180: Finalization of resolution plan *Phase 3: Approval and Implementation (180-270 days)* - Day 180: Approval of resolution plan by CoC - Day 210: Submission of resolution plan to Adjudicating Authority (AA) - Day 240: Approval of resolution plan by AA - Day 270: Implementation of resolution plan *Phase 4: Closure (270+ days)* - Day 270+: Completion of resolution plan implementation - Day 270+: Closure of CIRP proceedings Please note that this is a general outline, and the actual timeline may vary depending on the specific case and circumstances.

Various options are available to a company facing insolvency. There are both 𝗦𝘁𝗮𝘁𝘂𝘁𝗼𝗿𝘆 and 𝗡𝗼𝗻 𝗦𝘁𝗮𝘁𝘂𝘁𝗼𝗿𝘆 choices available. Statutory solutions set out in Insolvency legislation, such as: ✅ Administration ✅ Company Voluntary Arrangements ✅ Liquidations Are generally binding on all parties with a body of case law to assist with resolving any disputes. By entering into a statutory solution as soon as you become aware of Company insolvency you are usually protected from personal liability and for the Company’s losses. There are still certain circumstances where your prior conduct may leave you liable financially and/or subject to disqualification proceedings. Non statutory options may be more flexible and less costly, but generally carry higher risk for directors and may not be binding on all parties. 𝗜𝗳 𝘆𝗼𝘂 𝘄𝗮𝗻𝘁 𝘁𝗼 𝗸𝗻𝗼𝘄 𝘄𝗵𝗮𝘁 𝗼𝗽𝘁𝗶𝗼𝗻 𝗶𝘀 𝗯𝗲𝘀𝘁 𝗳𝗼𝗿 𝘆𝗼𝘂𝗿 𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝘆𝗼𝘂 𝘀𝗵𝗼𝘂𝗹𝗱 𝗰𝗼𝗻𝘁𝗮𝗰𝘁 𝗮𝗻 𝗜𝗻𝘀𝗼𝗹𝘃𝗲𝗻𝗰𝘆 𝗣𝗿𝗮𝗰𝘁𝗶𝘁𝗶𝗼𝗻𝗲𝗿 𝘄𝗵𝗼 𝘄𝗶𝗹𝗹 𝗾𝘂𝗶𝗰𝗸𝗹𝘆 𝗮𝘀𝘀𝗲𝘀𝘀 𝘁𝗵𝗲 𝗖𝗼𝗺𝗽𝗮𝗻𝘆’𝘀 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻, 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝘁𝗵𝗲 𝗶𝘀𝘀𝘂𝗲𝘀 𝗮𝗻𝗱 𝗮𝗱𝘃𝗶𝗰𝗲 𝘆𝗼𝘂 𝗼𝗻 𝘁𝗵𝗲 𝗼𝗽𝘁𝗶𝗼𝗻𝘀 𝗮𝘃𝗮𝗶𝗹𝗮𝗯𝗹𝗲 𝗮𝗹𝗹𝗼𝘄𝗶𝗻𝗴 𝘆𝗼𝘂 𝘁𝗼 𝗺𝗮𝗸𝗲 𝗮𝗻 𝗶𝗻𝗳𝗼𝗿𝗺𝗲𝗱 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻 𝗼𝗻 𝘁𝗵𝗲 𝘄𝗮𝘆 𝗳𝗼𝗿𝘄𝗮𝗿𝗱 𝗮𝗻𝗱 𝗺𝗶𝗻𝗶𝗺𝗶𝘀𝗲 𝗮𝗻𝘆 𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗹𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆. ☎️ 07876 790 563 ✉️ margo@mclenancorporate.com 💬 or message me on here

"𝗪𝗵𝗶𝗰𝗵 𝗳𝗼𝗿𝗺 𝗼𝗳 𝗶𝗻𝘀𝗼𝗹𝘃𝗲𝗻𝗰𝘆 𝗶𝘀 𝗰𝗼𝗿𝗿𝗲𝗰𝘁 𝗳𝗼𝗿 𝗺𝘆 𝗰𝗼𝗺𝗽𝗮𝗻𝘆?" Various options are available to a company facing insolvency. There are both 𝗦𝘁𝗮𝘁𝘂𝘁𝗼𝗿𝘆 and 𝗡𝗼𝗻 𝗦𝘁𝗮𝘁𝘂𝘁𝗼𝗿𝘆 choices available. Statutory solutions set out in Insolvency legislation, such as: ✅ Administration ✅ Company Voluntary Arrangements ✅ Liquidations Are generally binding on all parties with a body of case law to assist with resolving any disputes. By entering into a statutory solution as soon as you become aware of Company insolvency you are usually protected from personal liability and for the Company’s losses. There are still certain circumstances where your prior conduct may leave you liable financially and/or subject to disqualification proceedings. Non statutory options may be more flexible and less costly, but generally carry higher risk for directors and may not be binding on all parties. 𝗜𝗳 𝘆𝗼𝘂 𝘄𝗮𝗻𝘁 𝘁𝗼 𝗸𝗻𝗼𝘄 𝘄𝗵𝗮𝘁 𝗼𝗽𝘁𝗶𝗼𝗻 𝗶𝘀 𝗯𝗲𝘀𝘁 𝗳𝗼𝗿 𝘆𝗼𝘂𝗿 𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝘆𝗼𝘂 𝘀𝗵𝗼𝘂𝗹𝗱 𝗰𝗼𝗻𝘁𝗮𝗰𝘁 𝗮𝗻 𝗜𝗻𝘀𝗼𝗹𝘃𝗲𝗻𝗰𝘆 𝗣𝗿𝗮𝗰𝘁𝗶𝘁𝗶𝗼𝗻𝗲𝗿 𝘄𝗵𝗼 𝘄𝗶𝗹𝗹 𝗾𝘂𝗶𝗰𝗸𝗹𝘆 𝗮𝘀𝘀𝗲𝘀𝘀 𝘁𝗵𝗲 𝗖𝗼𝗺𝗽𝗮𝗻𝘆’𝘀 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻, 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝘁𝗵𝗲 𝗶𝘀𝘀𝘂𝗲𝘀 𝗮𝗻𝗱 𝗮𝗱𝘃𝗶𝗰𝗲 𝘆𝗼𝘂 𝗼𝗻 𝘁𝗵𝗲 𝗼𝗽𝘁𝗶𝗼𝗻𝘀 𝗮𝘃𝗮𝗶𝗹𝗮𝗯𝗹𝗲 𝗮𝗹𝗹𝗼𝘄𝗶𝗻𝗴 𝘆𝗼𝘂 𝘁𝗼 𝗺𝗮𝗸𝗲 𝗮𝗻 𝗶𝗻𝗳𝗼𝗿𝗺𝗲𝗱 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻 𝗼𝗻 𝘁𝗵𝗲 𝘄𝗮𝘆 𝗳𝗼𝗿𝘄𝗮𝗿𝗱 𝗮𝗻𝗱 𝗺𝗶𝗻𝗶𝗺𝗶𝘀𝗲 𝗮𝗻𝘆 𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗹𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆. ☎️ 07876 790 563 ✉️ margo@mclenancorporate.com 💬 or message me on here

WILL I BE MADE PERSONALLY LIABLE Dealing with insolvency is stressful enough, but what happens when you're made personally liable? In this video, we delve into the complexities of personal liability in insolvency situations. From understanding the legal implications to exploring ways to protect yourself, we provide valuable insights to help you navigate this challenging terrain. Whether you're a business owner or an individual facing financial difficulties, knowing your rights and responsibilities is crucial. Tune in to learn more about the risks and safeguards associated with personal liability in insolvency. Book now for a free business insolvency check https://lnkd.in/epnRrHjV Call 08000862766 #BusinessOwnerUK #BusinessAdvice #DirectorsLoan #CompanyDirector #BusinessDebt #DebtAdvice #Insolvency #BounceBackLoan #ExcludedUK #ForgottenLTD #UKHospitality #ConstructionUK #DebtProblems #DebtFreeUK #Helpline #BusinessHelp #DebtHelp #Liquidations #Administration #BusinessAdministration #SupportSmallBusiness #HMRC #TaxCompliance #FinancialEducation

📢 Approval of Resolution Plan for Satellite Cables Private Limited On April 23, 2024, the National Company Law Tribunal (NCLT) Court-III, New Delhi, approved the resolution plan for Satellite Cables Private Limited in case PLAN IA-5/2024 in IB-1185(ND)/2019. This significant development marks a key milestone in the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. Key Highlights: Operational Creditor: Oswal Minerals Limited Corporate Debtor: Satellite Cables Private Limited Resolution Professional: Mr. Abhimanyu Mittal Successful Resolution Applicant: M/s. Suraj Garg Timeline and Process: Initiation: The CIRP commenced with the admission of the application on January 3, 2023, and Mr. Santanu Kumar Samanta was appointed as Interim Resolution Professional. Resolution Professional Appointment: Mr. Abhimanyu Mittal was confirmed as the Resolution Professional on March 9, 2023. Approval by Committee of Creditors (CoC): The resolution plan submitted by M/s. Suraj Garg was approved by the CoC on December 22, 2023, with a 100% voting share. Plan Details: The approved plan includes a total consideration of ₹5,87,45,000 to be paid in two installments. The first installment covers CIRP costs and part payment to secured financial creditors within 30 days, and the remaining amount is to be paid within 60 days. Update as of May 24, 2024: The resolution plan has been officially approved by the NCLT today, marking a successful conclusion to the CIRP for Satellite Cables Private Limited. This approval underscores the effectiveness of the IBC framework in facilitating timely and efficient resolution of insolvency cases, ensuring the best possible outcomes for creditors and other stakeholders.

𝗧𝗵𝘂𝗿𝘀𝗱𝗮𝘆𝘀' 𝘄𝗶𝘁𝗵 𝗚𝗮𝘂𝗿𝗶: 𝟮𝟮𝗻𝗱 𝗪𝗲𝗲𝗸-𝟮𝟮𝗻𝗱 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲: Today, on my birthday, I'm excited to share insights into a significant development in the realm of corporate law that has far-reaching implications for creditors and debtors alike. 𝗜𝗕𝗖 𝗔𝗺𝗲𝗻𝗱𝗺𝗲𝗻𝘁: 𝗦𝗮𝗹𝗲 𝗼𝗳 𝗔𝘀𝘀𝗲𝘁𝘀 𝗼𝗿 𝗥𝗲𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻 𝗣𝗹𝗮𝗻𝘀 𝗼𝗻 𝗮 𝗦𝗲𝗴𝗿𝗲𝗴𝗮𝘁𝗲𝗱 𝗕𝗮𝘀𝗶𝘀 – 𝗔 𝗚𝗮𝗺𝗲 𝗖𝗵𝗮𝗻𝗴𝗲𝗿? The recent amendments to the Insolvency and Bankruptcy Code (IBC) have introduced the concept of the sale of assets or resolution plans on a segregated basis specifically under Regulation 37 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. This significant change aims to enhance the flexibility and efficiency of the insolvency resolution process in India. Let’s delve into what led to this amendment, its impact on the IBC mechanism, and who stands to benefit the most.   Traditionally, the IBC required a single resolution plan for the entire corporate debtor, which often proved cumbersome and time-consuming, especially for large conglomerates with diverse business units. The segregated basis approach was introduced to allow for the sale of different units or assets separately, facilitating a more targeted and efficient resolution.   𝗪𝗵𝘆 𝗜𝘁 𝗛𝗮𝗽𝗽𝗲𝗻𝗲𝗱: - Large companies with multiple business units faced significant hurdles in finding a single resolution applicant willing to take over the entire entity. - Separate sales of assets can often fetch higher value than a bundled sale, thus maximizing returns for creditors. - Allows resolution professionals to devise more flexible and tailored solutions for different parts of the business.   𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗻 𝘁𝗵𝗲 𝗜𝗕𝗖 𝗠𝗲𝗰𝗵𝗮𝗻𝗶𝘀𝗺: - Facilitates quicker and more efficient resolutions, particularly for large and complex insolvencies. - Creditors may achieve better recovery rates compared to a single resolution plan. - Attracts a wider pool of bidders interested in specific assets or business units rather than the entire distressed entity.   𝗖𝗮𝘀𝗲 𝗟𝗮𝘄: A notable case that highlights the significance of asset segregation in resolution plans is the case of 𝗘𝘀𝘀𝗮𝗿 𝗦𝘁𝗲𝗲𝗹.Although this case pre-dates the amendment, the complexity and challenges faced during its resolution underscored the need for more flexible approaches, such as the segregated sale of assets, to expedite and optimize the insolvency resolution process.

Fancy going it alone? Setting yourself up in Practice Guide This guide has been produced for those who are intending to set up an insolvency practice and practise as a licensed appointment taking Insolvency Practitioner (“IP”). You may be a newly qualified IP, or already be a practising IP within a firm (perhaps as an employee IP) and have decided that you wish to start your own business offering insolvency services.   The guide includes reference to the general, financial and administrative matters applicable to all businesses (for example, communication with HM Revenue and Customs in terms of tax, PAYE and VAT registration, employment law, partnership and company registration, anti-money laundering regulations, ethical considerations, data protection and consumer credit licensing.   The guide includes a help sheet covering key matters to consider when becoming an appointment taking IP, including how to apply for your licence and matters for consideration as to the structure of your business. Available here - https://lnkd.in/e2zjZmqz R3 Association of Business Recovery Professionals #insolvency #insolvencypractitioner #business #solo #guidance #licence #insolvencyservices #restructuring

Interesting order: Section 12 of the Code provides the time-limit for completion of CIRP and states as follows: “12. (1) Subject to sub-section (2), the corporate insolvency resolution process shall be completed within a period of one hundred and eighty days from the date of admission of the application to initiate such process. (2) The resolution professional shall file an application to the Adjudicating Authority to extend the period of the corporate insolvency resolution process beyond one hundred and eighty days, if instructed to do so by a resolution passed at a meeting of the committee of creditors by a vote of sixty-six per cent. of the voting shares. (3) On receipt of an application under sub-section (2), if the AA is satisfied that the subject matter of the case is such that corporate insolvency resolution process cannot be completed within one hundred and eighty days, it may by order extend the duration of such process beyond one hundred and eighty days by such further period as it thinks fit, but not exceeding ninety days: However here this order is a precedent: We have heard Ld. Counsel for the Applicant / RP. This application is for seeking extension of CIRP beyond the period of 180 days for a period of 90 days stating that ten EOIs have been received and there are chances of viable resolution plan. Though there is no resolution of the CoC recommending extension but seeing the objects of the IBC to have maximization of the value of the assets and to run the Corporate Debtor as a going concern, we allow the extension for another period of 90 days

Brief details: This application has been filed seeking the following reliefs: To allow the revival of the Corporate Insolvency Resolution Process of the CD. The decision of the CoC taken in the 5th CoC meeting to liquidate the Corporate Debtor also cannot be approved due to more than one reason. The minutes of the 6th , 7th and 8 th meeting of CoC, where plan was permitted to be filed for discussion is clearly in derogation with the earlier decision of the CoC to liquidate the Corporate Debtor which indicate that CoC itself did not adhere to its earlier decision of liquidation. Sufficient ground exist within the meaning of Section 61(4) to assail the order directing for liquidation.application for liquidation under Sec33(2) IBC is set aside. CIRP stands restored and the CoC is directed to pursue the case in view of the directions passed by the Hon’ble NCLAT. My view Liquidation is always last resort and max efforts need to be put in to revive the CD.