Tag Archives: insolvency

srei board superseded

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=52346

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=52349

RBI has superseded the Board of Directors of Srei Infrastructure Finance Limited and Srei Equipment Finance Limited and appointed an administrator as well as a Committee to assist the Administrator in the discharge of his duties.

Now both the companies will be taken to the insolvency court for resolution of the matter.

In exercise of the powers conferred under Section 45-IE (1) of the Reserve Bank of India Act, 1934, the Reserve Bank has today superseded the Board of Directors of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL), owing to governance concerns and defaults by the aforesaid companies in meeting their various payment obligations. Shri Rajneesh Sharma, Ex- Chief General Manager, Bank of Baroda has been appointed as the Administrator of the aforesaid companies under Section 45-IE (2) of the RBI Act. The Reserve Bank also intends to shortly initiate the process of resolution of the above two NBFCs under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 and would also apply to the NCLT for appointing the Administrator as the Insolvency Resolution Professional.

The Reserve Bank of India, today, has superseded the board of directors of SIFL and SEFL and appointed Shri Rajneesh Sharma, ex-Chief General Manager, Bank of Baroda, as the Administrator. The Reserve Bank, in exercise of powers conferred under section 45-IE (5) (a) of the RBI Act 1934, has constituted a three-member Advisory Committee to assist the Administrator in discharge of his duties. The members of the Advisory Committee are as follows:

1. Shri R. Subramaniakumar, Former MD & CEO, Indian Overseas Bank

2. Shri T T Srinivasaraghavan, Former Managing Director, Sundaram Finance Limited

3. Shri Farokh N Subedar, Former Chief Operating Officer and Company Secretary, Tata Sons Limited

It may also be mentioned that the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 provide for the concerned financial sector regulator appointing a Committee of Advisors to advise the Administrator in the operations of the financial service provider during the corporate insolvency resolution process.

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insolvency process of personal guarantor

IBBI has issued a circular dated 2nd February, 2021 wherein they have made an online process for submitting application for initiation of insolvency resolution process of a personal guarantor to a corporate debtor. This application is filed under section 94(1) or 95(1) of the Insolvency and Bankruptcy Code 2016.

On making an application online, the applicant shall get an acknowledgement.

This is one more step of making all applications online by the government.

The application can be made online at this site i.e.

https://ibbi.gov.in/intimation-applications/iaaa-personal-one

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list of creditors – insolvency

IBBI has vide its circular dated 27th November, 2020 created an online website for the list of creditors to be uploaded on it for the benefit of the stakeholders. Interim Resolution Professionals or Resolution Professionals have anyways to update the list and submit it to the Adjudication Authority and upload it on the website of the corporate debtor. Now vide this mechanism, the list of creditors will be made available on a public website for perusal by the stakeholders.

This requirement is applicable to every corporate insolvency resolution process ongoing as on 13th November, 2020. The format of list of creditors is given in the Annexure to the said circular.

This has been bought about vide an amendment to the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations 2016.

For more details you can click on the following link

https://www.ibbi.gov.in/

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no insolvency cases.

Vide an amendment to the Insolvency and Bankruptcy Code, government had stayed all insolvency proceedings in respect of defaults occurring after 25th March, 2020 by a period of six months i.e upto 24th September, 2020.

This is due to the covid pandemic and in order to protect the companies during this dire period.

Now vide another notification issued yesterday, i.e. 24th September, this period has been extended by another 3 months i.e. upto 24th December, 2020.

Copy of the notification is available at the IBBI site.

https://www.ibbi.gov.in/

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insolvency for corporate persons

The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2020 today.

The Insolvency and Bankruptcy Code, 2016 (Code) envisages appointment of an authorised representative (AR) by the Adjudicating Authority to represent financial creditors in a class, like allottees under a real estate project, in the committee of creditors. For this purpose, the Regulations require the interim resolution professional to offer a choice of three Insolvency Professionals (IP) in the public announcement, and the creditors in a class to choose one of them to act as their authorised representative. The amendment made to the Regulations today provides that the three IPs offered by the interim resolution professional must be from the State or Union Territory, which has the highest number of creditors in the class as per records of the corporate debtor. This will facilitate ease of coordination and communication between the AR and the creditors in the class he represents.

The Regulations currently envisage that the authorised representative shall seek voting instructions from creditors in a class at two stages, namely, (i) before the meeting; and (ii) after circulation of minutes of meeting. The amendment made to the Regulations today provides that the authorised representative shall seek voting instructions only after circulation of minutes of meeting and vote accordingly. He shall, however, circulate the agenda, and may seek preliminary views of creditors in the class before the meeting, to enable him to effectively participate in the meeting.

The Regulations provide that the committee of creditors shall evaluate all compliant resolution plans as per evaluation matrix to identify the best of them and may approve it. The amendment made to the Regulations today provides that after evaluation of all compliant resolution plans as per evaluation matrix, the committee of creditors shall vote on all compliant resolution plans simultaneously. The resolution plan, which receives the highest votes, but not less than sixty-six percent of voting share, shall be considered as approved.

The amendment Regulations are effective from today. These are available at www.mca.gov.in and www.ibbi.gov.in.

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voluntary liquidation

The Insolvency and Bankruptcy Board of India (IBBI) has notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2020 on 15th January. 2020.

 

The aforesaid amendment provides that a Liquidator shall deposit the amount of unclaimed dividends, if any, and undistributed proceeds, if any, in a liquidation process along with any income earned thereon into the Corporate Voluntary Liquidation Account before submission of an application for dissolution of the corporate person. It also provides a process for a stakeholder to seek withdrawal from the Corporate Voluntary Liquidation Account.

 

The amended regulations are effective from 16th January, 2020. These are available at http://www.mca.gov.in and www.ibbi.gov.in.

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