The Insolvency and Bankruptcy Board has notified the Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021 on April 9, 2021. The regulation provides the operationalisation of the pre-pack process, its initiation, cost and termination for micro, small and medium enterprises (MSMEs). It also provides various operational aspects, ranging from the eligibility of resolution professionals to the invitation and submission of resolution plans for stressed MSMEs. They state the details and manner with respect to the following:
- Eligibility of a 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 PIRP.
*Tanvi Singh, Editorial Assistant has put this story together.