Interim Resolution Professional – IPR/PR
Insolvency resolution professionals and resolution professionals are crucial figures in the implementation of the Insolvency and Bankruptcy Code, 2016. They serve as the main pillar of the process once an insolvency application is approved by the National Company Law Tribunal (NCLT).
After being appointed by the NCLT, the resolution professional takes over the management and operations of the corporate debtor and oversees the entire corporate insolvency resolution process. This means that the powers of the existing board of directors or partners in the case of a limited liability partnership are suspended and transferred to the resolution professional. As such, the resolution professional effectively becomes the CEO or director of the company.
Given their central role in the process, resolution professionals are often subject to legal challenges, suits, and even physical attacks. They may also face compensation claims even after the conclusion of the corporate insolvency resolution process.
Essentials: What are the roles of Interim Resolution Professional / Resolution Professional in the Insolvency Resolution Process?
- Managing and preserving the value of the corporate debtor’s property and overseeing its ongoing operations as a viable entity.
- Taking custody and control of all assets owned by the corporate debtor as listed in its balance sheet or other relevant documents.
- Gathering and analyzing all relevant information related to the corporate debtor’s assets, finances, and operations to determine its financial position.
- Receiving, verifying, and collating claims from creditors in response to the public announcement and taking custody of all relevant assets and business records.
- Acting as the representative of the corporate debtor in all proceedings, including legal, quasi-legal, and arbitration proceedings, and exercising its rights for its benefit.
- Raising interim finance if required to ensure the CIRP runs smoothly.
- Appointing an interim resolution professional if necessary to conduct the CIRP.
- Maintaining an updated list of all claims made by creditors.
- Convening and attending all meetings of the Committee of Creditors/Financial Creditors.
- Inviting resolution plans from prospective resolution applicants/investors and presenting them at CoC meetings.
- Filing applications to avoid preferential, undervalued, extortionate, or fraudulent transactions if necessary.
- Making a public announcement of the insolvency resolution process for the corporate debtor.
- Examining each resolution plan received to ensure it meets the criteria set out in Section 30 (2) and presenting eligible plans to the CoC.
- Submitting the CoC-approved resolution plan to the adjudicating authority for approval.
- Placing the CoC-approved plan before the adjudicating authority for its final approval.
How SalahKaro helps?
- SalahKaro offers a team of knowledgeable interim and insolvency resolution professionals.
- Excellent results and happy customers
- Best value for the assets to realize the debt and pay it off
- Strong negotiation abilities to ensure that a good resolution plan is adopted by the CoC.
- Taking the best interest of stakeholders into consideration
