Insolvency and Bankruptcy
Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021
for MSME Notified
The Insolvency and Bankruptcy Code (Amendment)
Ordinance, 2021 promulgated on 4th April, 2021 provides for
pre-packaged insolvency resolution process (PPIRP) for corporate debtors
classified as micro, small and medium enterprises. The Insolvency and
Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India
(Pre-packaged Insolvency Resolution Process) Regulations, 2021 (PPIRP
Regulations) on 9 April 2021 to enable operationalisation
of PPIRP.
The PPIRP Regulations detail the Forms that
stakeholders are required to use, and the manner of carrying out various tasks
by them as part of the PPIRP. These provide details and manner relating to:
a.
Eligibility to act as
resolution professional, and his terms of appointment;
b.
Eligibility of registered
valuers and other professionals;
c.
Identification and
selection of authorised representative;
d.
Public announcement and
claims of stakeholders;
e.
Information memorandum;
f.
Meetings of the creditors
and committee of creditors;
g.
Invitation for resolution
plans;
h.
Competition between the
base resolution plan and the best resolution plan;
a.
Evaluation and
consideration of resolution plans;
j.
Vesting management of
corporate debtor with resolution professional;
k.
Termination of PPIRP.
The PPIRP Regulations come into force from today. These are
available at www.mca.gov.in and www.ibbi.gov.in.