Voting in the Committee of Creditors

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.... Entities All Registered Insolvency Professional Agencies (By mail to registered email addresses and on website of the IBBI) Dear Madam / Sir, Sub: Voting in the Committee of Creditors The Insolvency and Bankruptcy Code, 2016 (Code) prescribes voting requirements for various approvals by the Committee of Creditors (CoC). For example, section 28(1) of the Code mandates that the Resolution Prof....

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.... background, an issue has been raised whether a financial creditor, who is not yet admitted as a member of the CoC, would be considered a dissenting or abstaining financial creditor. 2. The relevant provisions in this regard are: a. Section 13 of the Code mandates a public announcement calling for the submission of claims under section 15. Further, section 15 mandates that the public announceme....

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....ecision taken by the CoC prior to such inclusion. c. Section 18 of the Code mandates the Interim Resolution Professional to receive and collate all claims submitted by creditors to him, pursuant to public announcement under sections 13 and 15 of the Code and constitute a CoC. It also mandates him to list assets and liabilities of the corporate debtor as on the insolvency commencement date. Secti....

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....ode read with regulations provide for the manner of collection and verification of claims. b. The Interim Resolution Professional constitutes the CoC comprising financial creditors, whose claims have been admitted, as members. c. The voting power of a member in the CoC is based on the amount of admitted claim in respect of the financial debt. d. A financial creditor, whose claim has not been....