IBC Code, 2016: Expert Advice is The Way to Go

India has finally brought in an effective Mechanism for initiating insolvency proceedings against the Financially defaulting Companies by way of The Insolvency and Bankruptcy Code, 2016. The IBC offers a standardized, comprehensive financial condition legislation encompassing all corporations, partnerships and Sole Proprietorship.

The Code provides that where a corporate debtor has defaulted in paying a debt that has become due and payable but not repaid, the corporate insolvency resolution process may be initiated in the manner as provided in this Chapter in respect of such corporate debtor by a financial creditor, an operational creditor or the corporate debtor itself.

Naturally, the processes are complicated and the stakes are high. This increases the necessity of expertise being sought from firms or individuals with requisite experience to handle such cases and do what is best for their clients. Not everybody can advice and resolve matters involving multiple stakeholders with the integrity, honesty and skill that it needs.

The experts should be able to advise on the large and complex restructurings of distressed assets along with contingency planning, debt restructuring, distressed acquisitions/sales, credit bidding, formal insolvency proceedings, out-of-court refinancing and distressed debt trading. They should also be able to advise lenders and investors at all levels of the capital structure as well as corporates/directors, central banks, insolvency officeholders/trustees and government institutions. Besides, they should be willing to work closely with specialists in related practice areas including finance, corporate, real estate, employment, tax, regulatory, capital markets and litigation to provide an all-round service.

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