Management of operations as going concern empowers IRP/RP to preserve value, appoint professionals, enter contracts and raise interim finance. Management as going concern requires the IRP/RP to protect and preserve the corporate debtor's value and manage its operations, including appointing professionals, entering into or modifying contracts, issuing instructions to personnel, and taking necessary actions. The IRP/RP may raise interim finance during CIRP to achieve these aims, subject to restrictions on creating security over encumbered property without secured creditors' consent except where property value substantially exceeds secured debt. Advance payments for goods received during CIRP are not interim finance but are treated as CIRP costs.
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.
Management of operations as going concern empowers IRP/RP to preserve value, appoint professionals, enter contracts and raise interim finance.
Management as going concern requires the IRP/RP to protect and preserve the corporate debtor's value and manage its operations, including appointing professionals, entering into or modifying contracts, issuing instructions to personnel, and taking necessary actions. The IRP/RP may raise interim finance during CIRP to achieve these aims, subject to restrictions on creating security over encumbered property without secured creditors' consent except where property value substantially exceeds secured debt. Advance payments for goods received during CIRP are not interim finance but are treated as CIRP costs.
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