Compilation of Information Memorandum
In compliance with IBC Section 29(1), the Resolution Professional is responsible for composing an Information Memorandum. This document, shaped according to the specifications of the Board, encompasses essential details required for the development of a comprehensive resolution plan.
As outlined in Section 29(2), the Resolution Professional is obliged to provide the resolution applicant with access to all pertinent information, both in physical and electronic form. However, such access is subject to the resolution applicant's commitment to adhere to prevailing laws on confidentiality and insider trading. Moreover, the resolution applicant must pledge to protect any intellectual property belonging to the corporate debtor and refrain from disclosing relevant information to third parties unless complying with the stipulated clauses (a) and (b) of this subsection. For clarity, "relevant information" in this context includes all data necessary for the resolution applicant to construct a resolution plan. This encompasses the financial position of the corporate debtor, details on disputes involving the corporate debtor, and any other specifics specified by the Board.
Submission of Resolution Plan - IBC Sec. 30
As per Section 30 of IBC, a resolution applicant is authorized to present a resolution plan to the Resolution Professional. This plan, developed based on the information contained in the Information Memorandum, undergoes a thorough examination.
The Resolution Professional meticulously reviews each submitted resolution plan to ensure its adherence to critical criteria, encompassing, but not limited to:
Prioritizing the payment of insolvency resolution process costs as specified by the Board over other debts of the corporate debtor.
Establishing repayment provisions for operational creditors in a manner defined by the Board, ensuring the amount payable to operational creditors does not fall below that in the event of the corporate debtor's liquidation under Section 53.
Formulating provisions for the management of the corporate debtor's affairs post-approval of the resolution plan.
Detailing plans for the implementation and supervision of the resolution plan.
Ensuring conformity with prevailing laws to prevent contravention.
Adhering to additional requirements as specified by the Board.
This meticulous examination is imperative to guarantee that the resolution plan aligns with the legal framework and meets the stipulated criteria for a successful and compliant resolution process.
For detailed insights into the legal aspects of the resolution plan formulation process, we invite you to consult our expert legal team.