The approval of the Resolution Plan in CIRP requires a minimum 66% of the voting share of members of the Committee of creditors
By Ashok Kumar Gulla
The Insolvency and Bankruptcy Code, 2016 (IBC Code) enacted on May 28, 2016, provides for invitation of resolution plans from Prospective Resolution Applicants (PRAs) for revival of the corporate debtor (CD). However, in case no resolution plans are received or approved, the Adjudicating Authority (AA) may pass an order of Liquidation under Sec 33 of the IBC Code. Regulation 2B was introduced in IBBI (Liquidation Process) Regulations, 2016 on July 25, 2019 opening another window for CD to be sold by inviting scheme of Compromise or Arrangement under Sec 230 of Companies Act, 2013 (the Sche…
Read the full article at: https://www.financialexpress.com/industry/companies-in-liquidation-how-resolution-plan-in-cirp-differs-from-scheme-of-compromise-under-companies-act/2260830/