In a major step toward improving the insolvency resolution framework, the Insolvency and Bankruptcy Board of India (IBBI) has proposed a mechanism for better coordination of the Corporate Insolvency Resolution Process (CIRP) for interconnected entities.
A discussion paper released by the regulator highlights the inefficiencies, escalated costs and conflicts arising from the absence of a structured approach when multiple related entities undergo CIRP simultaneously. The proposed amendments seek to introduce joint hearings, appointment of a common resolution professional, information-sharing protocols and coordinated timelines to enhance efficiency and value realisation.
This initiative is being viewed as a “mini group insolvency”…
