Page 22 - Quick Insights Book 2022

Chap. 3 – Insolvency Professional

 Meet with the Creditors in CoC apart from attempting to  Reviewing the various risks involved in restructuring.
evolve a consensus on resolution proposals, etc.
 Developing risk mitigation strategies.
The Government has provided a mechanism in the Code
for resolving Insolvency and Bankruptcy through Insolvency  Working out a detailed bank able financial structure of
Professionals subject to the supervision and control of the the business.
Adjudicating Authority and regulation by Insolvency Bankruptcy  Working out a detailed plan for restructuring the business
Board of India (IBBI) and Insolvency Professional Agency (IPA). from all angles.

Only a Registered IP can act as Resolution Professional or  Assessment of distressed assets, cash position, due
Trustee and Liquidators under the Companies Act, (under diligence and turnaround feasibility.
section 275 of companies act) as well as under the Code.  Advice on optimum utilization of resources.
For the purpose of the quality of the services required to carry
on the business of debtors as an on-going concern and to  Corporate Applicant Insolvency.
maximise the value of the corporate debtor, the entry norms for
the IPs are strict, requiring professional standing for not less  Assessing Cross Border Insolvency transactions.
than 10 years for CA/CS/CWA & Advocates and 15 years for  Representation before the Debt Recovery Tribunals–
candidates from the Management Stream, subject to passing particularly after notification of individual/firmbankruptcies.
of an examination and completing a 50-hour Pre-Registration
Course.  Representation before the NCLT or NCLAT, High Courts
or Supreme Court.
The IP occupies a pivotal position and acts as an intermediary  Negotiating settlements.
between the debtor/creditors on the one hand and the
Adjudicating Authority on the other hand and functions under  Advisory in relation to a merger or acquisition or
the watchful eyes of the Agency and the Board. Newspapers takeover.
have recently been replete with references to the Insolvency
Law and the role of IPs. It will be interesting to see how, going  Advisory services to management on an on-going basis.
forward, its implementation impacts the strategic opportunity  Bankruptcy of Personal Guarantors, Firms and
matrix for existing and new entrepreneurs, while throwing up Individuals.
new areas of business and management opportunities.
 Handling the Liquidation Process.
 Verifying Each Plan
CORPORATE INSOLVENCY AND  Compliance with applicable laws, codes, rules and
RESTRUCTURING regulations

As per IBBI Newsletter for the quarter March 2022, distribution
OPPORTUNITIES IN CORPORATE INSOLVENCY of IPs as per their eligibility (an IP may be a member of more
AND RESTRUCTURING than one Institute) as on 31st March, 2022.

Some of the areas where Chartered Accountants may find
opportunities within the ambit of IBC are:

 Assisting IP in preparing for pre-CIRP preparation.

Quick Insights on Professional Opportunities for Chartered Accountants 9