Creditor-initiated insolvency resolution process conversion governs transfer to corporate insolvency proceedings, moratorium, and continuation of related actions. Conversion of a creditor-initiated insolvency resolution process into a corporate insolvency resolution process is required where no resolution plan is received within the stipulated period, the corporate debtor or its personnel fail to assist or cooperate, or the plan is rejected under the specified approval provisions. The Adjudicating Authority must convert the process under Chapter II, determine the stage of commencement, appoint the resolution professional, declare a moratorium, and include prior costs as insolvency resolution process costs. The committee of creditors may also approve conversion by a sixty-six per cent vote, and pending avoidance or fraudulent trading proceedings continue after conversion.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Creditor-initiated insolvency resolution process conversion governs transfer to corporate insolvency proceedings, moratorium, and continuation of related actions.
Conversion of a creditor-initiated insolvency resolution process into a corporate insolvency resolution process is required where no resolution plan is received within the stipulated period, the corporate debtor or its personnel fail to assist or cooperate, or the plan is rejected under the specified approval provisions. The Adjudicating Authority must convert the process under Chapter II, determine the stage of commencement, appoint the resolution professional, declare a moratorium, and include prior costs as insolvency resolution process costs. The committee of creditors may also approve conversion by a sixty-six per cent vote, and pending avoidance or fraudulent trading proceedings continue after conversion.
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