The Insolvency and Bankruptcy Board of India (“IBBI”) has notified the IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2019 (“Amendment Regulations”) in order to amend the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“Regulations”) issued under the Insolvency and Bankruptcy Code, 2016 (“IBC”).
The key amendments introduced in the Regulations by the Amendment Regulations are as follows:
Introduction of sub-regulation (ba) in regulation 37: A new sub-regulation (ba) has been introduced in regulation 37 to provide that one of the measures which may be provided in a resolution shall be restructuring of the corporate debtor by way of merger, amalgamation and demerger.
Substitution of sub-regulation 38(1): Sub-regulation 38(1) has been substituted to include a provision in respect of amounts payable under a resolution plan to dissenting financial creditors to be paid in priority over financial creditors who voted for the resolution plan.
This update has been contributed by Aastha (Partner) and Arhat Chhabra (Associate).
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