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IBBI amends norms for insolvency resolution process related to personal guarantors

IBBI amends norms for insolvency resolution process related to personal guarantors

The Insolvency and Bankruptcy Board of India (IBBI) has introduced amendments to regulations governing the insolvency resolution process for personal guarantors and the voluntary liquidation process. Key changes have been made to facilitate better coordination between the processes and enhance stakeholder participation.

One significant amendment removes restrictions on Insolvency Professionals (IPs) from being appointed as Resolution Professionals (RPs) for personal guarantors, allowing for greater harmonization between corporate and personal insolvency proceedings. This move aims to improve coordination and efficiency.

Additionally, the amendments mandate the convening of creditor meetings in personal guarantor cases to address complexities and ensure a collaborative resolution approach. This requirement aims to enhance fairness and efficacy in the system by fostering active stakeholder participation and cooperation.

In another update, the IBBI has streamlined the voluntary liquidation process, requiring directors of the corporate entity to disclose any pending proceedings or assessments before statutory authorities when initiating voluntary liquidation.

These amendments reflect IBBI's efforts to refine insolvency and bankruptcy processes, promoting a more equitable and robust framework for addressing financial distress in personal guarantor cases while also ensuring transparency and accountability in voluntary liquidation proceedings.

IBBI amends norms for insolvency resolution process related to personal guarantors

IBBI amends norms for insolvency resolution process related to personal guarantors

The Insolvency and Bankruptcy Board of India (IBBI) has introduced amendments to regulations governing the insolvency resolution process for personal guarantors and the voluntary liquidation process. Key changes have been made to facilitate better coordination between the processes and enhance stakeholder participation.

One significant amendment removes restrictions on Insolvency Professionals (IPs) from being appointed as Resolution Professionals (RPs) for personal guarantors, allowing for greater harmonization between corporate and personal insolvency proceedings. This move aims to improve coordination and efficiency.

Additionally, the amendments mandate the convening of creditor meetings in personal guarantor cases to address complexities and ensure a collaborative resolution approach. This requirement aims to enhance fairness and efficacy in the system by fostering active stakeholder participation and cooperation.

In another update, the IBBI has streamlined the voluntary liquidation process, requiring directors of the corporate entity to disclose any pending proceedings or assessments before statutory authorities when initiating voluntary liquidation.

These amendments reflect IBBI's efforts to refine insolvency and bankruptcy processes, promoting a more equitable and robust framework for addressing financial distress in personal guarantor cases while also ensuring transparency and accountability in voluntary liquidation proceedings.

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