Resolution Professionals (RPs) managing the operations of distressed companies undergoing corporate insolvency proceedings will now be required to assess and report whether the company has completed any transactions to siphon off funds prior to insolvency proceedings.
Under the Insolvency and Bankruptcy Board of India (IBBI) (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2016 RPs will be required to provide an opinion on whether the company has been subject to avoidance transactions within 75 days of the start of corporate insolvency resolution process (CIRP).
The RP is duty-bound to find out if a CD (Corporate Debtor) has been subject to avoidance transactions, namely, preferential transactions, u…
Read the full article at: https://indianexpress.com/article/business/ibbi-amends-norms-resolution-professional-to-provide-opinion-7416053/
