We assist Debtors and Guarantors file for Process Withdrawal under Section 12A, of IBC 2016. If your company is under insolvency, get in touch to disucsss the prospectives for it be pulled out of it.

Section 12
Regulation 30: Withdrawal of Application

RESOLUTION APPLICANT, A NEW OPPORTUNITY

As illustrated above, on acceptance of IBC petition, an Interim Resolution Professional (“IRP” or RP) is appointed who takes over the management of the Corporate Person, against whom the insolvency proceedings have initiated. Thereafter the IRP has the responsibility

Making the public announcement for the submission of claims by all the creditors (financial or operational)
# Preparing list of all claims
# Preparing the statement of affairs
# Call for resolution plan

What is a resolution plan – Resolution plan means a plan proposed by a resolution applicant for insolvency resolution of the corporate debtor a going concern.   

WHY BECOME A RESOLUTION APPLICANT

After the invitation by the IRP, any person who is eligible under IBC can submit a resolution plan and become a resolution applicant. The resolution plan has to be prepared on the basis of the information memorandum.

By grabbing this opportunity of becoming a resolution applicant and submitting a resolution plan, every business can avail certain benefits. Few of them have been listed below:-

# A) Acquisition of business – if any person is looking to take over a certain business, then this is the opportunity for them, whereby just submitting a viable resolution plan they can take over the business which is running and having a complete system in place.

# B) Piercing into a new domain – if any business is looking to enter into a new domain or new operations, then it is easy for them. That person has to just submit a resolution plan before the Resolution Professional and if it gets accepted then it will become easy for that business to enter into such a new domain.

# C) Promotion of entrepreneurship:- by becoming a resolution applicant, entering into business is easy. Rather than starting from the scratch it will become easier for the new entrants to just invest a small amount and acquire the business which has the potential in the future.

# D) Comparative low cost :- Once the company goes under Insolvency, its goodwill value and even the prices of some items get affected by market sentiments. Further, there are certain intangible assets associated with every company which loses its value during the resolution process. Due to such points, the price which is for resolution proposal is much less than the price asked by such party if it would not be under insolvency.

# E) Better understanding with creditors and stakeholder – The resolution proposal is approved by committee of creditors, which implies that it would give an understanding with the creditors for future.

BECOME A RESOLUTION APPLICANT

The Insolvency and Bankruptcy Code, 2016 (“IBC”) was enacted with the objective of reorganization and insolvency resolution of corporate persons who is unable to pay its debts in a time-bound manner.

Furthermore, the objectives of IBC include:-

# Maximization of the value of assets of corporate persons.
# To promote entrepreneurship.
# Availability of credit.
# The balance of interests of all the stakeholders.

AAAIP has developed a team and have trained them for various finance and accounts related jobs during CIRP and Liquidation Process for the purpose of providing support to Insolvency Professionals who are partners of this Insolvency Professional Entity. Following are some of the jobs which can be highlighted for this team: –

To understand the financial position of the Corporate Debtor and to prepare a list of assets and liabilities up to the date of commencement of CIRP or liquidation and to present the same before COC or Stakeholders.
To analyze the financial statement of Corporate Debtor and various other financial and legal documents to understand the financial position, reasons for financial stress, remedies available, fund flow and cash flow of Corporate Debtor, the root cause of financial stress, etc.
To supervise the accounts and finance function of the Corporate Debtor and keep a close watch on the cash flow from operations and to maintain accounts for CIRP cost.
To co-ordinate with Internal auditors, statutory auditors and transactional auditors and provide them all the information to get timely reports from them. 

All the above jobs are also done during the liquidation process for the Insolvency Professionals who are partners of AAAIP and are appointed as liquidator. Similar services would also be provided in the case of Insolvency Resolution Process and Bankruptcy Process of Individuals, Proprietorship Concerns and Partnership Firms.

The partners of AAAIP are being appointed as liquidator during Liquidation Process and Voluntary Liquidation Process and would also be appointed as Bankruptcy Trustee after the provisions of Individual bankruptcy are notified. AAAIP has separated the function of Liquidation Process and have trained a separate batch of human resources for the handling of Liquidation Process. Following are the key responsibilities of the Liquidation Process team: –

# To communicate with all stakeholders such as Stakeholders Consultative Committee, other claimants, promoters and directors, Key Managerial Personnel, statutory authorities, auditors, employees of Corporate Debtor, etc for the purpose of seeking information, informing them about the commencement of Liquidation Process.
# To appoint professionals such as Registered Valuers for valuation of the assets of the Corporate Debtor; auditors for receipt and payment account, brokers for the sale of assets and even for selling the Corporate Debtor as going concern
# To maintain a penal of professionals after verification of key documents, antecedents and performance history for the purpose of their appointment for Corporate Debtors. AAAIP maintain a penal of advocates, auditors, registered valuers, media agencies, security service providers, etc. to be used for Liquidation Process.
# To interact and coordinate with different professionals appointed for the process and to provide the requisite information for completion of the job and to obtain their report.
# To convene Stakeholders Consultation Meetings and to prepare all notices, agenda, minutes, etc and to act as a bridge between stakeholders and the Insolvency Professional.
# To prepare and compile Asset Memorandum, Preliminary Reports, Progress Reports and co-ordinate for all the information required.
# To conduct the entire process e-auction process for sale of assets, preparation of e-auction document, keep the virtual data room, verify eligibility of bidder under section 29A and other documents for receipt and examination of bids. To issue a letter of intent and sale certificate and distribute the funds to stakeholders.

Liquidation Process is all about selling the assets of the Corporate Debtor and distributing the sale proceeds to stakeholders. The liquidator, in the normal course, gets better remuneration if the assets are sold in the first six months and his remuneration diminishes on every sale after the first six months. Therefore, AAAIP has made special arrangements for efficient and faster sale of assets of Corporate Debtor during the Liquidation Process. Following are the key deliverables of the Asset Sale team to partners of AAAIP: –
# Asset Sale Team prepare brief details of each asset and collect all the title documents and other details for proper due diligence of prospective buyers.
# The assets sale is advertised on various online portals for sale of assets such as property portals, vehicle sale portals, scrap sale portals, etc. and common digital mobile number is used for all the portals. The same common mobile number is used for various other publicity efforts for sale of assets such as banners, new paper inserts, new paper advertisements, bulk emails, bulk sms, etc.
# The leads generated out of all efforts are captured in software and all the leads are attended regularly to develop them as a bidder. Human resources posted are various cities co-ordinate for inspection of the asset by the prospective bidders.
# The team also create a Virtual Data Room (VDR) for uploading all the relevant documents, title papers, list of assets, etc for faster transfer of information to prospective bidders.

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There are situations during the CIRP and Liquidation Process that Insolvency Professionals would urgently require human resources to be posted at Corporate Debtor’s business. AAAIP has developed full-fledged department for recruitment and appraisal of human resources with a large database of industry experts and retired bankers who can be posted to monitor cash flow at Corporate Debtor

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AAAIP has an in-house IT department responsible for hardware and software maintenance. The team is also responsible for uploading various documents on the IBBI website and on the website of Corporate Debtor.

AAAIP has made in-house arrangements for state-of-the-art video conferencing capable of having a video conference call with more than 10 participants and also share files on the screen simultaneously. It has also made in-house arrangements for video recording of proceedings of any meeting of Committee of Creditors or Stakeholders. All these support services are available for partners of Insolvency Professional Entity. 

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