Important amendments effected by the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2018 are:

Important amendments effected by the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2018 are:

Time Line for Prospective Resolution Applicants

a.     The regulations provide timelines for various activities in a resolution process. The amendments now require the resolution professional to identify the prospective resolution applicants on or before the 105^th day from the insolvency commencement date.

Insolvency Resolution Process Costs

b.    The regulations provide that the expenses to be incurred on or by the interim resolution professional / the resolution professional shall be fixed / ratified by the Committee of Creditors and such fixed / ratified expense will form part of insolvency resolution process costs. The amendments now provide that such expenses means the fee to be paid to the interim resolution professional, the fee to be paid to insolvency professional entity, if any, and the fee to be paid to professionals, if any, and other expenses to be incurred by the interim resolution professional / resolution professional.

Item Wise Insolvency Resolution Process Costs

c.     The interim resolution professional / the resolution professional shall disclose item wise insolvency resolution process costs in such manner, as may be required by the Board.

Disclosure by a Financial Creditor

d.    A financial creditor submitting a claim to the interim resolution professional shall declare whether it is or is not a related party in relation to the corporate debtor.

No Need to File Affidavits

e.     The forms for submission of claims required affidavit from the claimant. The amendments have dispensed with the requirement of affidavit.

To sell the corporate debtor as a going concern.

a.     The regulations allow a liquidator to sell an asset on a standalone basis. These also allow the liquidator to sell the assets in a slump sale, a set of assets collectively, or the assets in parcels. The amendments now allow the liquidator to sell the corporate debtor as a going concern.

Interest on Interim Finance

b. The amendments provide that the liquidation cost includes interest on interim finance for a period of twelve months or for the period from the liquidation commencement date till repayment of interim finance, whichever is lower.

5. The amendment regulations are effective from 1^st April, 2018. These are available at www.mca.gov.in and www.ibbi.gov.in