TOP 10 CHANGES IN “IBC”
June 7, 2018
- Home buyers as financial creditors
- MSME with a special dispensation –one major benefit- it does not disqualify the promoter to bid for his enterprise undergoing CIRP, if not willful defaulter.
- Withdrawal of CIRP permissible only with the approval of the Committee of Creditors with 90 percent of the voting share.
- Furthermore, such withdrawal will only be permissible before publication of notice of EOI
- The voting threshold has been brought down to 66 percent from 75 percent for all major decisions
- Further, in order to facilitate the corporate debtor to continue as a going concern during the CIRP, the voting threshold for routine decisions has been reduced to 51%.
- The Resolution Applicant shall submit an affidavit certifying its eligibility to bid. This places the primary onus on the resolution applicant to certify its eligibility.
- Minimum one-year grace period for the successful resolution applicant to fulfill various statutory obligations.
- Non -applicability of moratorium period to enforcement of guarantee
- Special resolution for corporate debtors to themselves trigger insolvency.
CS MK BANSAL