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Insolvency and Bankruptcy code (Schemes withdrawn by RBI after IBC (from…
Insolvency and Bankruptcy code
Adjudicators
DRT
for individuals unlimited
partnership firms
NCLT
companies and limited
liabilities entities
Function
early
identification of financial distress
resolution of companies and limited liability
entities if biz viable
Has Enabling provisions to deal with cross border
insolvency
Schemes withdrawn by RBI after IBC (from March 18)
o Strategic Debt Restructuring Scheme
o Scheme for Sustainable Structuring of
Stressed Assets (S4A)
o Corporate Debt Restructuring Scheme
o Joint Lenders’ Forum (JLF)
o Flexible Structuring of Existing Long-Term
Project Loans or 5/25 refinancing.
New regime by RBI (harmonising with IBC)
Resolution plans for all stressed assets over 2000 cr to be completed in 180 days
If RP not implemented account to be referred to IBC in 15 days
For restructuring outside IBC account should not be in default
Banks have to report to CRILC on SMA every month
Default with exposure of more than 5 cr to be reported weekly
Insolvency and
Bankruptcy Board of India
Regulator oversight over
insolvency
professionals
insolvency professional
agencies
Information Utilities
would store financial data like borrowings, default and security interests etc. of firms.
mandatory for financial creditors to provide financial information to IU
help lenders in taking informed decisions about credit transactions
Info can used
as evidence in bankruptcy cases before NCLT
National e-Governance Services Ltd (NeSL) 1st IU