Corporate Insolvency and Restructuring
Insolvency and Bankruptcy Code 2016
The Central Government of India introduced the Insolvency and bankruptcy code 2016, in India to create a time bound processes for insolvency resolution of corporate persons, partnership firms and individuals for maximization of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interest of all the stakeholders.
If insolvency cannot be resolved, the assets of the borrowers may be sold to repay creditors. The Insolvency and Bankruptcy Board of India (IBBI) was established on 1.10.2016 under the Code for implementation and regulation of the profession and processes.
Regulatory Framework and Tribunals
The National Company Law Tribunal (NCLT) adjudicate insolvency resolution for companies. The Debt Recovery Tribunal (DRT) adjudicate insolvency resolution for individuals. The Code creates time-bound processes that will be completed within 180 days with further period of 90 days.
This code shall not apply to corporate persons who are regulated financial service providers such as Banks, Financial institutions and Insurance Companies.
Our Expertise and Experience
BAVM LEGAL has an extensive practice in Insolvency related litigation. With a dedicated team of Advocates, the Firm has the expertise, experience and capacity to provide a complete range of professional services from preparation, drafting, filing to finally defending and challenging in Courts/Tribunals.
Our clientele consists from both private sectors and individuals, besides foreign clients. This adds variety to the Firm's experience and gives it a unique edge in handling diverse insolvency matters.
Restructuring & Insolvency Practice
As a brief our Restructuring & Insolvency practice includes advice and assistance in implementing restructuring through the formal court or tribunal process, including the formulation of strategies in line with the legal framework and legal representation in courts and tribunals.
Our comprehensive services include:
- Advice on the Insolvency and Bankruptcy Code, 2016 including the restructuring and insolvency process contemplated therein
- Advice and assistance in drafting, negotiating and finalizing relevant transaction documents, including applications, petitions and resolutions
- Advice and assistance in the liquidation process available to debtors under the legal, regulatory and policy framework
- Advice and assistance in structuring and implementing an exit strategy for investors from stressed assets
- Advice and assistance to directors and key managerial personnel on their liabilities and obligations