As per the proposal, the Information Memorandum (IM) must include the names, units allotted, and amounts due for all allottees as reflected in the corporate debtor’s (developer’s) own books of account, irrespective of whether they have formally submitted a claim. The resolution plan subsequently prepared by prospective buyers must provide for the treatment of these allottees.
The discussion paper claims that the change is intended to prevent post-resolution issues, uncertainty, and litigation when non-filing homebuyers approach the successful resolution applicant seeking inclusion.
An information memorandum is a detailed document that includes all information about a company undergoing an insolvency process. The memorandum must have…