Insolvency Round-up - Other Amendments

1) Representation of class of financial creditors in the existing Corporate Insolvency Resolution Process.

Section 21(6A)(b) of the I&B Code 2016 read with Regulation 16A of I&B (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (Regulations) provides for the mechanism w.r.t representation of class of financial creditors where the number of such financial creditors are of such number as prescribed through Authorized Representative. It provides that the obligation to offer a choice of Resolution Professional who should represent the class of financial creditor is on the Interim Resolution Professional. In Insolvency Resolution Professional will be required to provide the name of three Insolvency Professional in the public announcement and creditors belonging to such class need to name one of such Insolvency Professional. The Insolvency Professional having the maximum votes will accordingly get appointed as Authorised Representative of such class