Resolution Delayed Is...

How ailing corporate entities can benefit more from the proposed changes in timeline for insolvency resolution

The Insolvency and Bankruptcy Board of India (IBBI) recently published a discussion paper aimed at reducing delays and improving the resolution value under the corporate insolvency resolution process (CIRP) conducted as per the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC).

The IBBI pointed out that currently the timelines under the IBC are seemingly linear, which creates a false impression that activities have to proceed sequentially.

However, from experience and on the basis of a finer analysis, it is understood that the timeline is not linear. Rather, a group of activities under the CIRP can be performed parallelly and grouped together - for instance, claim-related activities, assets-related activities, and activities related to the identification of prospective resolution applicants.