Initiation of corporate insolvency resolution process [ Section 54O ]

Initiation of corporate insolvency: committee decision can convert pre pack into CIRP and trigger admission effects.

Committee of creditors may resolve to initiate a corporate insolvency resolution process for an eligible corporate debtor after the pre packaged insolvency commencement date and before plan approval by a sixty six percent vote. On intimation, the Adjudicating Authority must, within thirty days, terminate the pre pack process, initiate CIRP under Chapter II, appoint the nominated resolution professional as interim resolution professional subject to written consent, and include pre pack costs as part of insolvency resolution process costs; if consent is withheld, the Authority shall seek the Board's recommendation for appointment. The order is treated as an admission and CIRP commences from that order.