TOP 10 CHANGES IN “IBC”

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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