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NEW DELHI: The Insolvency and Bankruptcy Board of India (IBBI) has issued a new set of regulations to streamline the communication between professionals assigned to run bankrupt companies and various stakeholders in order to facilitate timely decision-making.
The Insolvency Resolution Process for Corporate Persons (Fourth Amendment) Regulations issued by IBBI on Friday showed that the resolution professional hired by the lenders has to communicate with stakeholders by way of emails and where there is a change in the professional, the credentials of the email account have to be shared with the new person.
The ‘interim’ resolution professional shall open an email account and use it for all correspondences with stakeholders and in the event of their replacement by a resolution professional, they shall hand over the credentials of the email to the other person, said the regulations.
The resolution professional too, in case of their replacement, has to hand over the credentials to the newly hired professional. In certain cases, where it is not possible to send a communication to creditors, a public announcement made will be deemed to be the communication.
The new regulations also give guidance on the strategy for the marketing of assets of the corporate debtor.
The resolution professional has to prepare a strategy for the marketing of the assets of the corporate debtor in consultation with lenders where the total assets exceed ₹100 crore.
The decision of implementing such a strategy along with its cost will be subject to the approval of the lenders’ committee.
The members of the committee may also take measures for the marketing of the assets of the corporate debtor, the regulations said. The IBBI is reworking its rules and regulations to improve the outcome of bankruptcy resolution in terms of the revival of sick companies as quickly as possible.
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