Insolvency & Bankruptcy Professional Services

Insolvency Professional

An Insolvency Professional (IP) is a person accredited with the Insolvency and Bankruptcy Board of India who is appointed by the National Company Law Tribunal to act as a court officer to drive various processes like corporate insolvency resolution process, Liquidation under the insolvency and bankruptcy Services. The Insolvency Professional in the following domains:

• Corporate Insolvency Resolution Process (CIRP)

For resolving insolvencies of Corporate Debtors, a total time frame of 330 days is provided under the law. The process involves the appointment of a Resolution Professional, issuing public announcement, calling of claims from creditors, constituting a Committee of Creditors(CoC), inviting new investors (resolution applicants) to take over the dying unit for a specific value, and examining the resolution plans of such investors for approval by the CoC and thereafter by the NCLT. The applications in NCLT can be filed by the Financial Creditors, Operational Creditors, or the Corporate debtors themselves.

• Liquidation of the Corporate Debtor

In the event, that no resolution plan is received during the corporate insolvency resolution process (CIRP) or the plan is not approved by the CoC or NCLT, Or if the CoC decides, the liquidation of the corporate debtor is initiated for disposing of assets of the corporate debtor to meet its liabilities. The liquidation process involves calling of claims of stakeholders, the constitution of the stakeholders’ consultation committee for guiding the liquidator in the matter of the sale of assets defining priorities for distribution of the realized value of the assets. The law also provides for identifying questionable transactions (preference, undervalued, extortionate, and fraudulent) done by erstwhile promoters for avoidance/reversal.

• Insolvency and Bankruptcy of the Personal Guarantors to the Corporate Debtor

The adjudicating authority for such cases is NCLT. However, a mandatory requirement is that the corporate insolvency resolution process (CIRP) of the Corporate Debtor for whom the guarantee has been given by the persons should be going on. The procedure requires calling claims from the stakeholders and also framing a repayment plan for them. Under the bankruptcy process, the assets are disposed of to meet the liabilities of such persons.

• Bankruptcy

Our professionals have the experience to act as Bankruptcy Trustees for the handling of the estate of the bankrupt individual and effective management of assets and liabilities thereof. We also provide secretarial and advisory assistance to Bankruptcy Trustees across the nation.

• Prepackaged Insolvency

We cater services pertaining to Prepackaged insolvency, which is a law in the making, and the Ministry of Corporate Affairs has issued recommendations for the framework of the process. Prepack is a progressive approach towards the fast-track corporate insolvency process and will hopefully provide effective resolution to distressed corporates.

Resolution Plans

Resolution Plan is of utmost importance in any Corporate Insolvency Resolution Process (CIRP) as new investment and infusion of funds to run the ailing company comes through a successful resolution plan. The following are the steps involved in the execution of a successful resolution plan:

• Preparation

Preparation of plans on behalf of resolution applicants (Investors) with guidance on the preparation of expression of interest, & establishing that the plan complies with Insolvency and Bankruptcy Services, corporate debtor due diligence, the total amount to be offered under the Resolution Plan, presenting the plan before Committee of Creditors.

• Evaluation

On behalf of the Resolution Professional, compliance with section 29A and other Insolvency and Bankruptcy Services provisions, putting plans on the evaluation matrix and awarding scores, and interactions between CoC and the resolution applicant.

• Implementation

Of covenants of a plan after its approval by the NCLT

Legal Services

The insolvency processes of CIRP/Liquidation invariably involve legal proceedings including submissions to the NCLT at every juncture. We have a team of experienced advocates to cater to the following services:

• Drafting

Drafting and vetting of demand notices under section 8 to the debtor, drafting and filing of applications under sections 7, 9, and 10, preliminary/progress/final reports/other reports, dissolution application, liquidation/personal guarantor’s application to the NCLT, drafting a scheme of compromise and arrangement under Companies Act.

• Representation and appearances

We represent companies, resolution professionals, liquidators, and a committee of creditors in applications filed before the adjudicatory and appellate authorities under the insolvency and bankruptcy code.

• Due Diligence

Running checks and monitoring strict compliance to legal norms by the resolution professional, liquidator, and committee of creditors.

Process Advising

Process Advisors guide the IPs and other stakeholders to follow the steps as per law and work towards value maximization in the resolution process. They have an important role in finding a balance between stakeholders, CoC, Resolution Professionals, and Investors and assist in drafting, negotiating, and finalizing relevant transaction documents and other documents.
We as Insolvency services Professional firm have developed expertise in driving various processes under Insolvency and Bankruptcy Services and are adept at advising on the following:

• Advisors to the Resolution Professional

For keeping the process smooth and transparent, we have a pool of professionals who provide their expert advice to the RP throughout the process of Public Announcement, the appointment of registered valuers, authorized representatives and retainer legal counsels, invitation & verification of claims, the constitution of CoC, agenda and minutes of all CoC meetings, Information memorandum, transaction record audit, an audit of balance sheets, ROC Compliances, ongoing litigations or proceedings for and against the corporate debtors, EOI, RFRP, Evaluation Matrix, Negotiations on Resolution Plans, approval of resolution plans by CoC and NCLT, implementation of a resolution plan.

• Advisors to the Liquidator

A public announcement, the appointment of various professionals, calling of claims of stakeholders, the constitution of stakeholders consultation committee for guiding the liquidator in the matter of sale of assets defining priorities for distribution of the realized value of the assets, identifying questionable transactions (preference, undervalued, extortionate and fraudulent) done by erstwhile promoters for avoidance/reversal.

• Cash Flow Monitoring of the Corporate Debtor

To ensure that all legitimate inflows come into the Corporate Debtor and make necessary payouts, watching cash flows to ensure that corporate insolvency resolution process cost/ liquidation cost and other expenses required to run the corporate debtor on an ongoing basis are met.

Debt Syndication 

Assisting Resolution Applicants (investors) to participate in the sector/ industry of their preference under the insolvency and bankruptcy code, guiding them to participate in EOI and RFRP to ensure that their resolution plan is approved, arranging sources of funds for pumping into approved resolution plans

Group Insolvency of Corporate Debtors 

Though the law on this subject is yet to be passed, however, NCLTs have already allowed the group insolvency of Videocon Industries and Reliance Communications. We can assist our clients who wish to file the Insolvency of a group and can provide legal assistance in admitting their case. 

Cross Border Insolvency 

Many companies have assets abroad in their offshore companies or the companies set up in foreign countries may have assets located in India. The UNCITRAL Model is already in practice in most of the forward nations to resolve insolvencies of companies that have been set up across nations. In India, this model is under consideration.

How ASC Helps in Insolvency and Bankruptcy?

It is impracticable for an Insolvency Resolution Professional or a liquidator to single-handedly manage all diverse dimensions of the process of CIRP or liquidation. The requirement of backend services throughout the procedure including audit, compliance check, legal work, insurance, and other related assistance is indispensable. We have formed an Insolvency Professional Entity (IPE) in the name of ASC Insolvency Services LLP which is recognized and registered with the Insolvency and Bankruptcy Board of India (IBBI). Presently, there are eight Partners and more than twenty associates practicing all over India with extensive experience as Insolvency Professionals, Chartered Accountants, Company Secretaries, Management Experts, ex-Senior Bankers, and Advocates. 

Over the last four years of insolvency laws, ASC Insolvency Services LLP has handled about 30 cases of CIRP/ Liquidation/ Voluntary Liquidation/ Personal Guarantors to Corporate Debtors with a total debt size of more than 55,000 cr. By virtue of handling these cases, ASC Group has developed expertise in all steps required to complete the said processes.

Our Clients can avail of any of the collection of services or the entire backend services mentioned above which we shall be glad to take up:

• Banks/ Financial Institutions can avail services as Resolution Professionals to run the corporate insolvency resolution process or as Liquidators in the Liquidation Process. Our expert Insolvency Professionals will provide excellent insolvency services and their desired outcome.
• Resolution Professionals/ Liquidators can avail of our backend services or services as Advisors for all/any steps during CIRP or Liquidation including Preparing and Filing of Claims, Claim Verification, Process Advisors, Cash Flow Monitors, Financial Advisors, Forensic Auditors, Preparation of Information Memorandum, Preparation of Resolution Plan, Preparation of Request For Resolution Plan, Preparation of Evaluation Matrix, Advisors for implementation of Resolution Plan, Conducting Meeting of CoC/SCC, Conducting auction for the sale of assets.  
• Prospective Resolution Applicants/ new investors can approach us for preparation of Resolution Plans, presentations to, and negotiations with the Committee of Creditors for improvement of the Offer to their satisfaction.
• Assistance in the implementation of the Resolution Plan as a Monitoring Committee.
• For investors participating in the purchase of assets under Liquidation, we provide services of Due Diligence on legal aspects, commercial considerations, general guidance on the valuation of assets, and participation in the online e-auctioning process.
• Banks/ Institutions and Academic Institutes can avail of our services for the delivery of lectures or holding workshops on various aspects of the Insolvency and Bankruptcy Code, 2016.
• We also provide guidance for professionals like CAs, CS, Management Consultants, etc to become Insolvency Professionals and the level of preparation required for writing the exams. Further, we give handholding to the newly qualified Insolvency Services Professionals on how to do marketing with banks, and financial institutions and get empanelment, submit technical & financial bids with a view of taking assignments of CIRP/ liquidation in their names.
• General guidance to Corporates whose outstanding amounts have become overdue in other companies for recovering such amounts and initiating Insolvency proceedings as per the Insolvency and Bankruptcy Code, 2016.