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Considering the widening reach of Insolvency Bankruptcy Code, CII had organised a daylong Seminar on INSOLVENCY AND BANKRUPTCY CODE, 2016 (IBC 2016) - “THE GAME CHANGING ENACTMENT for SMEs & Emerging Corporates” on 22 September at Nagpur.
The Insolvency & Bankruptcy code -2016, is now spreading its wings day in & out. The Code per-se is not only for bank defaults, as may be generally perceived. Some big giants are facing heat of the ‘Game Changer’, at the same time some are grabbing opportunities to become bigger. There is paradigm shift of powers from defaulters to Creditors.
The Code is proving instrumental in unlocking the dead money trapped in tangible securities by quickening the resolution/recovery process. SMEs and Emerging Corporates are no exception to the purview of the Code. More and more cases falling under the SME category are approaching NCLT. Special dispensation is being offered by law makers to SMEs. That signifies the impact of IBC on SMEs and makes is inevitable to grasp different flavours of IBC 2016.
The Seminar received good response from professionals and business owners. The program covered the overview, intricacies of the Act including legal and valuation aspects involved in the Corporate Insolvency Resolution Process.
Eminent Insolvency Professionals and valuation experts from City and leading lawyer from Delhi had shared their experiences and understanding with the participants.
Leading Insolvency Professional, Corporate Finance expert and ex-banker CA Atul Rajwadkar gave an overview of the Act. He explained the background of the erstwhile regime for debt recovery. He stated the need and objective of the Code. He briefly introduced the Corporate Insolvency Process. He also explained the challenges under IBC. However, he showed the brighter side of the code that offers lots of opportunities for acquisition of valued assets of ailing companies and a chance for operational creditors to recover their dues.
Mr. Ranjit Jain, eminent CA and Insolvency Professional from Nagpur explained ecosystem of IBC such as IBBI, IPAs, IPs and NCLT, etc. He deliberated on crucial definitions of IBC, 2016 including moratorium and disqualification of Resolution Applicants and explained various procedural matters involved in Corporate Insolvency Resolution Process under IBC, 2016.
Adv. Sandeep Bajaj Leading Lawyer from Delhi and partner of PSL, Advocates and Solicitors along with his Senior Associate, Aakanksha Nehra discussed the factual implementation and enforceability of IBC. They also deliberated on factual analysis of various case studies and resolution plans. He answered the queries raised by the participants about challenges faced by operational creditors in using IBC to recover their dues.
Shri Hemant Ambaselkar explained the process of valuation under IBC. He spoke about international valuation standards which are become very relevant today as a minimum requirement for assessing the market value and liquidation values for the companies undergoing Corporate Insolvency proceedings. Till this time the standards were not mandatory. But after lBBI enforcing the up-gradation of all service providers including valuers, the standards have become mandatory.
The programme ended with vote of thanks by Mr Abhaya Singh, Head, CII for Vidarbha Region.
