Insolvency, Bankruptcy and Restructuring

It is felt that the IBC has been a game changer in the realm of economic legislations. Five years into its introduction, the IBC is a well-oiled apparatus, with a thriving ecosystem comprising of about 3500 Insolvency Professionals, three Insolvency Professional Agencies, about 80 Insolvency Professional Entities, one Information Utility, 16 Registered Valuer Organisations, more than 3900 Registered Valuers, several benches of the Adjudicating Authority with pan India presence and a massive volume of jurisprudence that has facilitated the cause of the Code time and again.

However, five years after the introduction of IBC, there are a few important questions that arise on the functioning and delivery of the law and whether it has been able to achieve the stated objectives. As per available data, the average time taken for initiation / admission of IBC cases has gone up to more than 180 days.

There are several important legal questions that have arisen on the rights of various stakeholders such as rights of secured creditors, ability of bidders to take control over a company pending approval of the resolution plan by the NCLT, and on creation of liquidity in the distressed phase.

In light of this, the esteemed panel will deliberate on the following issues:

• In light of pronouncement of orders by insolvency courts – both for admission of IBC cases and for approval of resolution plans. What steps can be evaluated for enabling early disposal of cases?
• Should pre-packaged insolvency resolution be enabled for non-MSME borrowers also? Do prepacks need to be less regulated?
• What are some of the key process related roadblocks to effective insolvency resolution from the perspective of a bidder?
• Should all distress situations be resolved under IBC? What are the roadblocks in achieving successful resolution under the June 7 circular (or any other RBI / companies act scheme)?
• The assurance of liquidation value to secured creditors in case of dissent from resolution plan is still unclear due to conflicting judgements. Do you think more clarity is required and what steps would you recommend?
• Will recent / proposed changes in regulations lead to more liquidity and trading of distressed loans? What are the further reforms required?
• Is there a need for statutory regulation of group insolvency procedures?
• Is there a need for diluting certain provisions of Section 29A to enable better price discovery and value maximization?