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Insolvency and Restructuring

ZOOMING INTO THE TOPOGRAPH OF INSOLVENCY AND RESTRUCTURING

The legal framework concerning Insolvency and Bankruptcy in India has undergone significant changes and continuous evolution. Our specialized teams are well-versed in both current developments and anticipated trends in this field. Additionally, we have actively contributed to the policy-making process in this domain.
In a market marked by increasing uncertainty, non-performing loans and distressed assets are on the rise. Our team specializing in restructuring and insolvency has considerable experience across various restructuring platforms, including but not limited to SICA, DRT, CDR, SARFAESI, SDR, S4A, and more recently, a significant number of cases under the Insolvency and Bankruptcy Code. We have actively collaborated with clients involved in loans and assets, both domestically and internationally.

Our expertise spans the entire spectrum of insolvency practice, encompassing restructuring through formal and informal procedures to revive distressed corporates, as well as managing processes leading to the actual liquidation and closure of businesses. We provide guidance to clients at various stages, including the pre-insolvency phase, corporate insolvency resolution processes (advising the committee of creditors or the resolution professional), and acquiring stressed assets through insolvency proceedings. Our comprehensive approach involves dealing with diverse aspects of insolvency matters, such as acquisitions, structuring deals, drafting resolution plans, conducting legal due diligence, addressing concerns, and clarifying queries in meetings with resolution professionals. Additionally, we advocate on behalf of the acquirer before the National Company Law Tribunal to ensure the resolution of the matter.

We possess substantial expertise in representing a diverse clientele, including acquirers, distressed asset funds, both international and domestic banks, financial institutions, trading and finance companies, lenders, issuers, and borrowers, in a wide array of banking and financing transactions. Our involvement is frequent in tasks such as structuring, documentation, litigation related to recovery, asset control, asset reconstruction, debt recovery, and negotiation of various secured and unsecured financing transactions. We have designated resources dedicated to providing seamless legal advice on Indian laws concerning both contentious and non-contentious aspects of cross-border issues, insolvencies, formal restructurings, and out-of-court settlements.

SPRINKLES OF INSOLVENCY SERVICES

IRP (Interim Resolution Professional)- We offer services to Financial Creditors, Operational Creditors, and Corporate Debtors, serving as an Insolvency Resolution Professional (IRP) to initiate the Corporate Insolvency Resolution Process (CIRP) in accordance with the provisions outlined in the Insolvency & Bankruptcy Code, 2016.

As a Resolution Professional (RP)- we deliver comprehensive services in accordance with the Insolvency & Bankruptcy Code, 2016, aiming to safeguard and maintain the assets of the Corporate Debtor. This includes ensuring the ongoing business operations of the Corporate Debtor.

Representation of committee of Creditors- We offer services in alignment with section 21(6A)(b) of the Insolvency & Bankruptcy Code, 2016, to act as representatives for specific Financial Creditors or a particular class of creditors on the Committee of Creditors.

Liquidator: We offer comprehensive services in accordance with the Insolvency & Bankruptcy Code, 2016, including the verification of creditors' claims, the management and supervision of assets, and the preservation and protection of the company's assets. Our responsibilities extend to facilitating a beneficial liquidation process.

Insolvency Resolution Advisory:

We provide unbiased and professional guidance to Corporate Debtors, Creditors, Partners, and Directors, suggesting the optimal course of action for the resolution process in the event of a default by the Corporate Debtor.

A. Pre-Insolvency/Distress Advisory:

Pre-initiation phase: The PPIRP involves a hybrid approach, with an informal pre-initiation phase and a formal post-initiation stage. The informality in the initial phase provides flexibility for the Corporate Debtor (CD) and its creditors to promptly examine and negotiate the optimal resolution for business stress. Meanwhile, the post-initiation stage focuses on maximizing value and providing the resolution plan with statutory protection.

B. Post-initiation phase: The PPIRP mandates the completion of the process within 120 days from the commencement date, which provides a model timeline and details of activities to be conducted. Throughout the PPIRP, the Board of Directors or partners of the Corporate Debtor (CD) retain the responsibility for managing the CD's affairs. They are obliged to make concerted efforts to safeguard and enhance the value of the CD's assets, ensuring its continued operations as a viable entity. Additionally, the promoters, members, personnel, and partners of the CD are expected to fulfill their contractual or statutory rights and obligations concerning the CD during this period.