The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 promulgated on 4^th April, 2021 provides for pre-packaged insolvency resolution process (PPIRP) for corporate debtors classified as micro, small and medium enterprises. The Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021 (PPIRP Regulations) today to enable operationalisation of PPIRP.

The PPIRP Regulations detail the Forms that stakeholders are required to use, and the manner of carrying out various tasks by them as part of the PPIRP. These provide details and manner relating to:

(a) Eligibility to act as resolution professional, and his terms of appointment;

(b) Eligibility of registered valuers and other professionals;

(c) Identification and selection of authorised representative;

(d) Public announcement and claims of stakeholders;

(e) Information memorandum;

(f) Meetings of the creditors and committee of creditors;

(g) Invitation for resolution plans;

(h) Competition between the base resolution plan and the best resolution plan;

(i) Evaluation and consideration of resolution plans;

(j) Vesting management of corporate debtor with resolution professional;

(k) Termination of PPIRP.

The PPIRP Regulations come into force from today. These are available at www.mca.gov.in and www.ibbi.gov.in.

Pre-packaged insolvency resolution process expands restructuring route for MSME corporate debtors through notified operational regulations. The notification implements a pre-packaged insolvency resolution process for MSME corporate debtors by prescribing eligibility and appointment terms for resolution professionals, eligibility of valuers and other professionals, selection of authorised representatives, requirements for public announcement and claims, the information memorandum, creditor meetings, invitation and evaluation of resolution plans including competition between base and best plans, vesting of management in the resolution professional, and procedures for termination, together with mandatory forms and modalities for stakeholders.