IBC Amendment: Wilful defaulters and entities whose accounts have been classified as NPAs will be barred from bidding for assets under the insolvency law
1. The President giving his assent to an ordinance to amend the Bankruptcy Code, 2016 to prevent unscrupulous persons from misusing or vitiating the provisions of the Code.
2. “The amendments aim to keep out such persons who have willfully defaulted, are associated with non-performing assets (NPAs), or are habitually non-compliant and, therefore, are likely to be a risk to the successful resolution of the insolvency of a company."
3. “Those who have their accounts classified NPA for one year or more and are unable to settle their overdue amounts include interest thereon and charges relating to the account before submission of the resolution plan” would also be ineligible.
4. Corporates, promoters and associate companies undergoing insolvency resolution or liquidation under the Code would not be eligible for bidding for the stressed assets.
5. The Committee of Creditors (CoC) should ensure the viability and feasibility of a resolution plan before approving it.
6. CoC should “reject a resolution plan, which is submitted before the commencement of the Ordinance but is yet to be approved
Company Secretary GAURAV SHARMA+919990694230 Connect on Watts App with Gaurav Email us [email protected] Submit your guest articles for our website click here we will publish it Subscribe our Email updates like other 100,000 Members, Free/Easy/Comfortableway
1. The President giving his assent to an ordinance to amend the Bankruptcy Code, 2016 to prevent unscrupulous persons from misusing or vitiating the provisions of the Code.
2. “The amendments aim to keep out such persons who have willfully defaulted, are associated with non-performing assets (NPAs), or are habitually non-compliant and, therefore, are likely to be a risk to the successful resolution of the insolvency of a company."
3. “Those who have their accounts classified NPA for one year or more and are unable to settle their overdue amounts include interest thereon and charges relating to the account before submission of the resolution plan” would also be ineligible.
4. Corporates, promoters and associate companies undergoing insolvency resolution or liquidation under the Code would not be eligible for bidding for the stressed assets.
5. The Committee of Creditors (CoC) should ensure the viability and feasibility of a resolution plan before approving it.
6. CoC should “reject a resolution plan, which is submitted before the commencement of the Ordinance but is yet to be approved
Company Secretary GAURAV SHARMA+919990694230 Connect on Watts App with Gaurav Email us [email protected] Submit your guest articles for our website click here we will publish it Subscribe our Email updates like other 100,000 Members, Free/Easy/Comfortableway
