{"id":4401,"date":"2022-05-02T09:04:35","date_gmt":"2022-05-02T09:04:35","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=4401"},"modified":"2024-06-23T19:04:38","modified_gmt":"2024-06-23T19:04:38","slug":"things-to-know-about-new-insolvency-resolution-process","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/things-to-know-about-new-insolvency-resolution-process\/","title":{"rendered":"Things to Know about New Insolvency Resolution Process"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-4849\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Initiation-of-Liquidation-under-the-IBC.jpg\" alt=\"Initiation of Liquidation under the IBC\" width=\"939\" height=\"526\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d2839e9c85d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d2839e9c85d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/things-to-know-about-new-insolvency-resolution-process\/#Things_to_Know_about_Insolvency_New_Insolvency_Resolution_Process\" title=\"Things to Know about Insolvency &amp; New Insolvency Resolution Process\">Things to Know about Insolvency &amp; New Insolvency Resolution Process<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/things-to-know-about-new-insolvency-resolution-process\/#What_is_Insolvency\" title=\"What is Insolvency?\">What is Insolvency?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/things-to-know-about-new-insolvency-resolution-process\/#Fair_Market_Value_and_Liquidation_Value_%E2%80%93_Whats_the_difference\" title=\"Fair Market Value and Liquidation Value \u2013 What\u2019s the difference?\">Fair Market Value and Liquidation Value \u2013 What\u2019s the difference?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/things-to-know-about-new-insolvency-resolution-process\/#Benefits_of_the_New_Resolution_Process\" title=\"Benefits of the New Resolution Process\">Benefits of the New Resolution Process<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/things-to-know-about-new-insolvency-resolution-process\/#Collaborating_with_Startup_Closure_Revival_Assistance\" title=\"Collaborating with Startup Closure &amp; Revival Assistance\">Collaborating with Startup Closure &amp; Revival Assistance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/things-to-know-about-new-insolvency-resolution-process\/#Collaborating_with_Windup_offers_numerous_benefits_for_Insolvency_Professionals\" title=\"Collaborating with Windup offers numerous benefits for Insolvency Professionals:\">Collaborating with Windup offers numerous benefits for Insolvency Professionals:<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/things-to-know-about-new-insolvency-resolution-process\/#Our_IBC_Support_Services\" title=\"Our IBC Support Services\">Our IBC Support Services<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Things_to_Know_about_Insolvency_New_Insolvency_Resolution_Process\"><\/span><span style=\"color: #000080;\"><strong>Things to Know about Insolvency &amp; New Insolvency Resolution Process<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"What_is_Insolvency\"><\/span><span style=\"color: #000080;\"><strong>What is Insolvency?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Insolvency occurs when an individual or company is unable to satisfy its financial obligations to its creditors as debts become due. It can happen even if the company&#8217;s liabilities surpass its assets. In most cases, the Liquidation Value of the stressed asset is calculated, and the proceeds of the sale are divided among creditors and other stakeholders. However, the insolvency resolution process of the Insolvency and Bankruptcy Board of India (IBBI) has lately undergone adjustments as a result of reforms.<\/p>\n<p><span style=\"color: #000080;\"><strong>What\u2019s New?<\/strong><\/span><br \/>\nFor stressed asset value, both the Liquidation Value and Fair Value are now mandatory to consider. To determine these two values, the resolution professional will appoint two registered valuers.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Fair_Market_Value_and_Liquidation_Value_%E2%80%93_Whats_the_difference\"><\/span><span style=\"color: #000080;\"><strong>Fair Market Value and Liquidation Value \u2013 What\u2019s the difference?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The FMV of an asset or property is an estimate of its market value. The asset can be purchased or sold, and the transaction takes place between two unpressured buyers and sellers.<\/p>\n<p><span style=\"color: #000080;\"><strong>Whereas<\/strong><\/span><br \/>\nLiquidation Value : When an asset is given inadequate time to sell on the open market, its Liquidation Value is at the best possible price. When a firm goes out of business and is unable to pay its creditors, its assets are frequently assessed for Liquidation Value. In most cases, Liquidation Value is less than Fair Market Value.<\/p>\n<p><span style=\"color: #000080;\"><strong>The New Insolvency Resolution Process at a Glance<\/strong><\/span><\/p>\n<ul>\n<li>The resolution professional will offer each member of the Committee of Creditors both the liquidation and fair value.<\/li>\n<li>All parties engaged &#8211; the creditors, the registered valuers, and the resolution professional\u2013 will sustain the confidentiality of both values.<\/li>\n<li>All potential resolution applicants will receive an invitation from the resolution professional. The resolution applicants have 30 days from the time they get the invitation to submit their resolution ideas.<\/li>\n<li>Maximize the value of the assets of the company which is insolvent are evaluated under the resolution plan.<\/li>\n<li>The resolution professional will submit the Committee of Creditors approved resolution plan to the NCLT at least 15 days of timeline before the maximum period for completing the corporate insolvency resolution process ends.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Benefits_of_the_New_Resolution_Process\"><\/span><span style=\"color: #000080;\"><strong>Benefits of the New Resolution Process<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Clarification of the approval process as well as the resolution plans.<\/li>\n<li>Rejected bidders have Less scope of litigation options because the evaluation matrix has been approved ealier by Committee of Creditors and is shared with all prospective resolution applicants.<\/li>\n<li>The process is more organized\/ systematic because the framework for inviting bids from resolution candidates and the periods are defined. Throughout the procedure, confidentiality is preserved.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Collaborating_with_Startup_Closure_Revival_Assistance\"><\/span><span style=\"color: #000080;\"><strong>Collaborating with Startup Closure &amp; Revival Assistance<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>We introduce Windup, a specialized entity committed to assisting startups facing closure, with a primary focus on exploring revival opportunities wherever feasible. Our approach is comprehensive, aiming to exhaust all possibilities for revival before considering closure, and we&#8217;re keen to collaborate with professionals like yourselves to achieve this mission.<\/p>\n<p>In today&#8217;s fast-paced business environment, startups often encounter significant challenges that may necessitate closure. However, at Windup, we firmly believe in exploring every avenue to support struggling startups and facilitate their potential revival. Our collaboration with esteemed insolvency professionals and Chartered Accountants is instrumental in achieving this goal. Our \u00a0initiative with Windup sounds both admirable and necessary in today&#8217;s startup landscape. By offering comprehensive support and exploring all avenues for revival before considering closure, you&#8217;re addressing a critical need for struggling startups. our collaboration with insolvency professionals and Chartered Accountants demonstrates a holistic approach to supporting these businesses through their challenges.<\/p>\n<p>Our approach to startup assistance encompasses a range of services tailored to meet the unique needs of each startup:<\/p>\n<ol>\n<li><strong> Consultation and Strategy: <\/strong>We engage in thorough discussions and consultations with startup founders to explore all viable options for reviving the business. Together, we craft tailored strategies and action plans aligned with the startup&#8217;s specific goals.<\/li>\n<li><strong> Guidance and Support: <\/strong>Our team offers compassionate guidance and support to founders throughout the decision-making process, leveraging our expertise to ensure informed choices.<\/li>\n<li><strong> Closure Assistance: <\/strong>In cases where revival efforts prove unsuccessful or impractical, we assist founders in navigating the legal and procedural aspects of closing their startup. We collaborate closely with insolvency professionals to ensure regulatory compliance and a smooth closure process.<\/li>\n<li><strong> Post-Closure Assistance: <\/strong>Even after closure, we continue to provide support and guidance to founders as they transition to their next endeavor, offering assistance with activities such as asset liquidation, debt settlement, and stakeholder communication.<\/li>\n<li><strong> Reviving IP\/Asset Utilization: <\/strong>We explore opportunities for acquisition, merger, or connecting with prospective buyers for the startup&#8217;s intellectual property, trademarks, patents, domains, or other transferrable assets.<\/li>\n<\/ol>\n<p>Our five-point approach covers every stage of the startup assistance process, from consultation and strategy development to post-closure support. This ensures that startups receive the guidance they need at every step of their journey, whether it leads to revival or closure.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Collaborating_with_Windup_offers_numerous_benefits_for_Insolvency_Professionals\"><\/span><span style=\"color: #000080;\"><strong>Collaborating with Windup offers numerous benefits for Insolvency Professionals:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Your benefits for collaborating with insolvency professionals highlight the mutual advantages of such partnerships. By expanding their service portfolio, accessing new clientele, and diversifying revenue streams, insolvency professionals can indeed differentiate themselves in the market and enhance their expertise in the startup ecosystem. Collaborating with Windup offers numerous benefits for Insolvency Professionals:<\/p>\n<ul>\n<li><strong>Enhanced Service Portfolio: <\/strong>Expand your service offerings to include startup revival assistance, addressing a growing need in the startup ecosystem.<\/li>\n<li><strong>Access to New Clientele: <\/strong>Gain access to a new pool of potential clients &#8211; startups in need of comprehensive support and guidance.<\/li>\n<li><strong>Diversification of Revenue Streams: <\/strong>Reduce dependency on traditional insolvency cases by diversifying revenue streams through startup assistance services.<\/li>\n<li><strong>Knowledge Exchange and Skill Enhancement: <\/strong>Gain valuable insights into the startup ecosystem, enriching your expertise and ability to serve clients effectively.<\/li>\n<li><strong>Differentiation and Competitive Advantage: <\/strong>Stand out in the market by offering a unique and specialized service, attracting new clients and positioning yourself as a leader in startup assistance.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Our_IBC_Support_Services\"><\/span><span style=\"color: #000080;\">Our IBC Support Services<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Representation and Assistance :\u00a0We offer expert representation and advisory services to various stakeholders in the insolvency and bankruptcy process, including:<\/p>\n<ul>\n<li><span style=\"color: #000080;\"><strong>Financial Creditors<\/strong><\/span><\/li>\n<li><span style=\"color: #000080;\"><strong>Operational Creditors<\/strong><\/span><\/li>\n<li><span style=\"color: #000080;\"><strong>Corporate Debtors<\/strong><\/span><\/li>\n<li><span style=\"color: #000080;\"><strong>Independent Professionals<\/strong><\/span><\/li>\n<li><span style=\"color: #000080;\"><strong>Interim Resolution Professionals<\/strong><\/span><\/li>\n<\/ul>\n<p>Our services encompass all stages of the IBC process, ensuring that our clients are well-represented and fully compliant with the relevant regulations.<\/p>\n<p>Resolution Plan Support :\u00a0We provide extensive assistance in the preparation and finalization of resolution plans and objections, ensuring that all documents meet the stringent requirements of the IBC and are strategically aligned with our clients&#8217; objectives.<\/p>\n<p>NCLT Proceedings Support :\u00a0We offer end-to-end support for proceedings conducted by the National Company Law Tribunal (NCLT) under the IBC. Our team of experts ensures thorough preparation and representation, guiding our clients through the complexities of NCLT processes.<\/p>\n<p>We are committed to empowering startups with financial finesse and navigating this journey together. Overall, Windup&#8217;s commitment to empowering startups and fostering collaboration within the professional community is commendable. In a landscape where startups face numerous challenges, your initiative provides a beacon of support and hope for those in need.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Things to Know about Insolvency &amp; New Insolvency Resolution Process What is Insolvency? Insolvency occurs when an individual or company is unable to satisfy its financial obligations to its creditors as debts become due. It can happen even if the company&#8217;s liabilities surpass its assets. In most cases, the Liquidation Value of the stressed asset &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[658],"tags":[890],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4401"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=4401"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4401\/revisions"}],"predecessor-version":[{"id":6457,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4401\/revisions\/6457"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=4401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=4401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=4401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}