Insolvency & Bankruptcy Matters

Insolvency and bankruptcy law deals with the legal framework for the resolution of financial distress of individuals, partnership firms and companies. Some important insolvency and bankruptcy matters include:

• Bankruptcy proceedings: Bankruptcy proceedings refer to the legal process by which an insolvent person or entity is declared bankrupt and their assets are liquidated to repay creditors. Bankruptcy proceedings may be initiated voluntarily or by creditors.
• Corporate Insolvency Resolution Process (CIRP): CIRP is a time-bound process for the resolution of corporate insolvency in India. It involves the appointment of an interim resolution professional, who takes over the management of the company and works with the creditors to come up with a resolution plan.
• Debt restructuring: Debt restructuring refers to the process by which the terms of existing debt agreements are renegotiated to alleviate financial distress. Debt restructuring may involve changing the interest rate, extending the repayment period, or reducing the principal amount owed.
• Liquidation: Liquidation refers to the process of selling off the assets of an insolvent person or entity to pay off creditors. The proceeds from the liquidation are distributed according to a prescribed order of priority.
• Cross-border insolvency: Cross-border insolvency refers to the insolvency of a company or individual with assets or debts in multiple jurisdictions. Cross-border insolvency proceedings can be complex, and they may involve coordination between multiple courts and insolvency practitioners.