Regulation 2B - Compromise or arrangement

Compromise or arrangement: deadlines and eligibility rules limit when liquidators can file proposals during liquidation.

Proposals for a compromise or arrangement under section 230 must be completed within ninety days of the liquidation order and that time is excluded from the liquidation period. Persons ineligible to submit resolution plans under the Code cannot be parties, and the liquidator may file a proposal only upon committee recommendation under regulation 39BA and not later than thirty days from the liquidation commencement date. Costs relating to the compromise are borne by the corporate debtor if the Tribunal sanctions it, otherwise by the proposing parties.