Marketing assets

IBBI streamlines communication rules for enterprise administrators

NEW DELHI: The Board of Insolvency and Bankruptcy of India (IBBI) has issued a new set of regulations aimed at streamlining communication between professionals charged with managing bankrupt businesses and various stakeholders to facilitate decision-making. timely decision.

The Insolvency Resolution Process for Corporations (Fourth Amendment) Regulations published by IBBI on Friday showed that the resolution professional hired by lenders must communicate with stakeholders via email and when there is a change. From professional, the credentials of the email account must be shared with the new person.

The “interim” resolution professional must open an email account and use it for all correspondence with stakeholders and in case of replacement by a resolution professional, he must hand over the credentials of the email to the other person, specifies the regulation.

The resolution professional must also, in the event of a replacement, deliver the credentials to the newly hired professional. In some cases, where it is not possible to send a communication to creditors, a public announcement made will be deemed to be the communication.

The new regulations also provide guidance on the strategy for marketing the debtor company’s assets.

The resolution professional should prepare a strategy for marketing the debtor company’s assets in consultation with lenders when the total assets exceed 100 crore.

The decision to implement such a strategy and its cost will be subject to the approval of the Lenders’ Committee.

The members of the committee can also take measures for the marketing of the property of the debtor legal person, specifies the regulation. IBBI is reworking its rules and regulations to improve the outcome of bankruptcy resolution in terms of reviving ailing businesses as quickly as possible.

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