Understanding Insolvency and Bankruptcy: Key Definitions and Distinctions
IntroductionInsolvency and bankruptcy are closely related financial concepts, yet they represent distinct aspects of financial distress. Insolvency refers to a financial condition where an individual or entity is unable to meet debt obligations as they fall due. Bankruptcy, on the other hand, is a legal process that is initiated when such financial incapacity becomes unmanageable…
Read article Applicability of the Insolvency and Bankruptcy Code, 2016: Scope and Key Provisions
The Insolvency and Bankruptcy Code (IBC), 2016 establishes a consolidated legal framework for the resolution of insolvency and bankruptcy in India. Enacted with the objective of ensuring a time-bound and structured resolution process, the Code applies to various categories of debtors, while expressly excluding certain regulated entities. Applicability of the IBC The Code is applicable…
Read article Resolution of Stressed Assets under the Insolvency and Bankruptcy Code, 2016: A Structured Approach to Financial Rehabilitation
The Insolvency and Bankruptcy Code (IBC), 2016 provides a comprehensive and time-bound framework for the resolution of stressed assets in India. It marks a paradigm shift from the traditional debtor-in-possession model to a creditor-in-control approach, with the objective of maximizing asset value and fostering stronger credit discipline. The National Company Law Tribunal (NCLT) is designated…
Read articleRBI Guidelines on the Restructuring of Advances by Banks
The Reserve Bank of India (RBI) issued comprehensive guidelines to enable the restructuring of advances by banks in response to the financial distress caused by the COVID-19 pandemic. These guidelines allow for a one-time modification of loan terms for eligible borrowers without necessitating a downgrade in asset classification, provided that specific regulatory conditions are met.…
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Personal guarantors to corporate debtors comes under IBC regime
On Friday (15th November 2019), the Ministry of Corporate affairs notified “Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019”. [WAS PUBLISHED IN THE GAZETTE OF INDIA, PART II, SECTION 3, SUBSECTION (i)]. The new rule called in short as “Insolvency and Bankruptcy rule 2019” shall come into…
Insolvency and Bankruptcy Code (IBC): List of restraints on FSPs during the moratorium period
Today (29.11.2019) RBI has filed an application under insolvency and liquidation proceeding against “ Dewan Housing Finance Corporation Limited” under Section 227 read with clause (zk) of sub-section (2) of Section 239 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rules 5 and 6 of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings…
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