Insolvency resolution professional and resolution professional (“RP”) is the key professionals and pillar under the Insolvency and bankruptcy code, 2016. These professionals are the whole and sole of the company after the insolvency application is approved by the adjudicating authority.
Resolution Professional is appointed by the adjudicating authority (National Company Law Tribunal, or NCLT. Upon admission of any corporate debtor by NCLT for the corporate insolvency resolution process (“CIRP”), Resolution Professional is required to take over the entire management and operation of the corporate debtor and run the whole CIRP. Powers of the existing board of directors (or the partners in case of LLP) stand suspended and vests in Resolution Professional so appointed. Thus, the Resolution Professional steps into the shoe of the Director/ CEO of the company. Resolution Professional is at the center of all actions and activities and, therefore, all challenges, suits, and sometimes even physical assaults are directed at him/her who has to perform in the face of all these. Resolution professionals are even exposed to compensation claims even after the conclusion of CIRP.
Essentials: What are the roles of Interim Resolution Professional / Resolution Professional in the Insolvency Resolution Process?
- Protect and preserve the value of corporate debtor’s property and manage corporate debtor’s operations as a going concern
- Take control and custody of any assets over which corporate debtor has ownership rights as per its balance sheet or information utility or depository
- Gather all information pertaining to the corporate debtor’s assets, finances, and operations for determining its financial position.
- Receive, verify and collate claims received from creditors in response to the public announcement;
- take custody and control of all assets including business records
- Represent and act on behalf of the corporate debtor with third parties and exercise rights for the benefit of the corporate debtor in all proceedings – judicial, quasi-judicial, or arbitration,
- Raise interim finance was needed for running the CIRP
- Appoint an Interim Resolution Professional to conduct CIRP as needed
- Maintain an updated list of claims
- Convene and attend all meetings of the Committee of Creditors/ Financial Creditors
- Invite a resolution plan for the corporate debtor from prospective resolution applicants/ investors.
- Present resolution plans at CoC meetings
- File applications for the avoidance of preference/ undervalued/ extortionate/ fraudulent transactions were determined.
- making a public announcement of the insolvency resolution process in respect of the corporate debtor;
- examining each resolution plan received so as to see whether the resolution plan meets the criteria enlisted under section 30 (2) and presenting the eligible resolution plans at the meetings of the committee of creditors;
- submission of the resolution plan approved by the committee of creditors to the adjudicating authority for approval of the latter;
- Placing the CoC-approved plan for approval of adjudicating authority.
How ASC Helps?
- ASC has a team of skilled insolvency resolution professional and interim resolution professional,
- Good output and satisfied clients
- Best value for the assets for realization and settling the debts,
- Powerful negotiating skills to ensure a good resolution plan to get approved in the CoC.
- Taking the best interest of stakeholders into consideration