IBBI

The Insolvency and Bankruptcy Board of India (IBBI) has extended the 90-day window for creditors to submit claims, in order to speed up the resolution procedure. Creditor may submit claims up to the time the request for resolution plan is issued or 90 days after the insolvency commencement date, whichever comes first.

Prior to the insolvency commencement date, creditors had 90 days to submit their claims. 

However, claim made after 90 days must be accompanied by a justification for the delay.

If a claim is received after the above deadline but within seven days of the date, the Committee of Creditors (CoC) will have to meet for approving the resolution plan, the resolution professional (RP) will determine whether the late claim’s collection is acceptable, stated the amendment.

Corporate Insolvency Resolution Process (CIRP) regulations proposed to allow a class of creditors to change an AR (Authorised Representative). Creditors with 10 per cent of the vote may request AR replacement and recommend a different insolvency practitioner to serve as AR.

The amendment said that within seven days of the assignment or transfer, the conditions and the assignee’s or transferee’s identification be disclosed for the effective conclusion of the CoC meeting.