Our country has been suffering from the lowest recovery rate in the world at about 20% of debt resulting in huge accumulation of NPAs caused due to various reasons attributed to debtors or creditors. It could be due to genuine business failure or the willful default by the borrowers or sudden downturn in industry or economy. On 28th May 2016, the Insolvency and Bankruptcy Code (IBC 2016) was enacted to provide the legal and legislative framework to support lenders effectively to recover or restructure defaulted debts in time. The Code became operational in December 2016.
The code replaces various previous multiple legislations and provides the appropriate platform for Insolvency Resolution within maximum 270 days from the date of admission failing which the liquidation of Debtors’ Assets will be initiated. It envisages an ecosystem comprising of National Company Law Appellate Tribunal (NCLAT), National Company Law Tribunal (NCLT), Debt Recovery Appellate Tribunal (DRAT), Debt Recovery Tribunal (DRT), Insolvency and Bankruptcy Board of India (Board), Information Utilities (IUs), Insolvency Professionals Agencies (IPAs), Insolvency Professionals (IPs) and Insolvency Professional Entities (IPEs) for implementation of the code. The code is now fully operational and a number of long pending litigations relating to corporate insolvency resolution and liquidation are getting settled fast. LSI aims to be a vibrant player in the new emerging Insolvency Resolution regime as an Insolvency Professionals Entity (IPE) by making available the services of Insolvency Resolution Professionals and other professionals like Chartered Accountants, Cost Accountants, Advocates, Valuers, Engineers, Project consultants, Security personnel under one roof.
The pivotal role played by Insolvency Professionals
In the whole process, Insolvency Professionals (IPs), who act as Interim Resolution Professional (IRP) and / or Resolution Professional (RPs) play a pivotal role. The IPs are registered and regulated by the Board. Through the institution of IPE, the IPs have been enabled to engage other professionals as may be necessary and to use organizational resources of an IPE for servicing the transactions.
We are the high-spirited entity in this emerging Insolvency Resolution regime as an IPE by making available the services of Insolvency Resolution Professionals and other professionals like Chartered Accountants, Cost Accountants, Advocates, Valuers, Engineers, Project consultants, Security personnel under one roof and also has infrastructural and manpower strength. This Company will receive continuous valuable guidance from Banking and Industry stalwarts like former Chairman, Managing Director and CEOs of State Bank of India, Coal India Ltd, SAIL, ICICI Securities and Power Grid Corporation of India Ltd. We strongly believe that this Company, with the patronage and support of all concerned, will grow into a prominent resolution company of the country in the years to come.
Delivery of Services by Competent Insolvency Resolution Professionals
An Interim Resolution Professional is appointed by Debtor / Creditor / NCLT to conduct certain functions under IBC 2016 for the initial 30 days from the date of admission of case by NCLT. A Resolution Professional is the insolvency professional appointed by the committee of creditors in its First Meeting. Either the Interim Resolution Professional or another Insolvency Professional may be appointed as Resolution Professional.
Our team of Insolvency Resolution Professionals consists of eminent former senior bankers, Chartered Accountants, Cost Accountants, Industry Veterans and Financial Experts and all are registered with the Insolvency and Bankruptcy Board of India and have extensive knowledge and wide experience.
Conducting the resolution process at the NCLT Bench as per time schedule and advising Corporate Debtors, Financial Creditors and Operational Creditors correctly, are our forte.
Corporate Consulting for Resolution / Liquidation
The Insolvency Resolution Services offered by our dedicated team of Experts includes Corporate Consultancy to the Corporate Debtor, Financial Creditor and Operational Creditor to file the Insolvency Resolution cases with the NCLT Bench. We also provide consultancy services for voluntary liquidation of Corporates.
Support to Resolution Professionals
We also provide secretarial assistance with the secretarial work to the Resolution Professionals. These services include the following:
Publishing the public announcement in newspapers as per the guidelines of the Insolvency and Bankruptcy Board of India Regulations (Insolvency Resolution Process for Corporate Persons), 2016.
Formulating / drafting the Agenda for the Meeting of Committee of Creditors. The agenda is prepared by our team of experts as per IBC 2016.
Preparation and sending of the Notice of Meeting by appropriate means. Our team prepares the notice as per the guidelines of the Insolvency and Bankruptcy Board of India Regulations (Insolvency Resolution Process for Corporate Persons), 2016.
Preparation of the Minutes of the Meeting.
Prepare the Action Taken Report which is based on the decisions taken during the previous meetings.
Compile the Information Memorandum as per the Insolvency and Bankruptcy Board of India Regulations (Insolvency Resolution Process for Corporate Persons), 2016. The Information Memorandum contains the financial particulars of the Corporate Debtor.
Correspondence with Banks and Statutory Authorities regarding the initiation of Corporate Insolvency. Our team ensures that there is complete compliance of the IBC 2016.
Other additional support such as arranging Valuers for valuation of assets of corporate debtors, security agencies for safeguarding the physical assets of the Corporate Debtor and E-voting / IT Support are also provided by us.
We provide legal assistance to our clients through empanelled advocates for initiating the Insolvency Resolution process. We have established associations with reputed Legal Firms to undertake cases with NCLT Benches. All the needs of the client with regard to making an application with NCLT / NCLAT are taken care of.
Forming a Resolution Plan
As per section 5(26) of the IBC, “Resolution Plan” means a plan proposed by any person for insolvency resolution of the Corporate Debtor as a going concern. A Resolution Plan is prepared on the basis of the information Memorandum given by the Resolution Professionals.
A Resolution Plan shall identify particular sources of funds that will be used to cover the following:
● The Insolvency Resolution Process costs.
● The Liquidation Value which is due to the Operational Creditors.
● The Liquidation Value outstanding to dissenting Financial Creditors.
Process Advisory under CIRP
To help us in the financial and technical domain, we have a large team of about 150 experts with integrated experience in the field. The multifaceted industrial experts bring with them immense expertise and knowledge for the job of Process Advisory. LSI has comprehensive experience in bringing in investors to a company based on its relationship with leading corporates across an array of industries.
In addition to this team of experts, we have a full-fledged M&A division, which remains constantly in touch with various companies looking for inorganic growth opportunities by way of acquisitions to reduce implementation and gestation time.
The Insolvency & Bankruptcy Board of India publishes important notices, announcements, court orders, amendments in the Act, etc. from time to time. Here are the quick links: