Quick Summary
The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 promulgated on 4th April, 2021 provides for pre-packaged insolvency resolution process (PPIRP) for corporate debtors classified as micro, small and medium enterprises. The Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021 (PPIRP Regulations) today to enable operationalisation of PPIRP.
The PPIRP Regulations detail the Forms that stakeholders are required to use, and the manner of carrying out various tasks by them as part of the PPIRP. These provide details and manner relating to:
- Eligibility to act as resolution professional, and his terms of appointment;
- Eligibility of registered valuers and other professionals;
- Identification and selection of authorised representative;
- Public announcement and claims of stakeholders;
- Information memorandum;
- Meetings of the creditors and committee of creditors;
- Invitation for resolution plans;
- Competition between the base resolution plan and the best resolution plan;
- Evaluation and consideration of resolution plans;
- Vesting management of corporate debtor with resolution professional;
- Termination of PPIRP.
The PPIRP Regulations come into force from today. Click here to view / download the same
FAQ :
These regulations operationalise the pre-packaged insolvency resolution process (PPIRP) for corporate debtors classified as micro, small and medium enterprises (MSMEs).
The PPIRP is for corporate debtors classified as micro, small and medium enterprises (MSMEs).
They detail the forms required by stakeholders and the manner in which they must carry out various tasks within the PPIRP, including eligibility criteria, public announcements, information memorandums, and resolution plans.
The PPIRP Regulations come into force from the date of notification, which is today.
The regulations cover eligibility for resolution professionals and valuers, public announcements and claims, information memorandums, creditor meetings, invitation and evaluation of resolution plans, and the termination of the PPIRP.
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