In addition, it will cover the distribution of unsold property to stakeholders, the status of any property that is still up for sale, and distributions to stakeholders.
As required under (liquidation process) standards, the IBBI has released a new format for progress report submission and is asking for feedback from stakeholders by July 12.
Both insolvency professionals and adjudicating bodies would profit from the initiative, which will provide a uniform and efficient approach to reporting. It will also guarantee clarity and uniformity throughout all submissions.
“To streamline the process and ensure uniformity in the structure of these reports filed by the liquidators before the Adjudicating Authority, it would be beneficial for insolvency professionals (IPs) and the adjudicating authority if there were a standardised format,” said the Insolvency and Bankruptcy Board of India (I
IBBI required in a circular from February of this year that these reports be distributed to the stakeholders’ consultation committee members, subject to a confidentiality agreement.
Currently, in accordance with the IBBI’s guidelines, the regulator specifies that the progress report needs to contain a number of facts, such as information on the professional appointments, their terms of employment, and their termination, as well as the resolution of the stakeholders list.
In addition, it will cover the distribution of unsold property to stakeholders, the status of any property that is still up for sale, and distributions to stakeholders.
“Additionally, the report should cover the fee due to and received by the liquidator, the remuneration or fee paid to professionals appointed by the liquidator, developments in any material litigation involving the corporate debtor, and the filing and developments in applications for avoidance of transactions,” the circular stated.
The IBBI, a statutory organisation under the Ministry of Corporate Affairs, requested public opinions by July 12 in a circular that was released on June 21.