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CA Hemant MehtaPracticing since 1992
Partner with APMH & Associates LLPB.Com, F.C.A., Master in Business Finance - ICAI,
DISA – ICAI Certified Concurrent Auditor for
Banks by ICAI
(Registered Insolvency Professional)
Registration No. # IBBI / IPA-001/IP-P00027/2016-17/10060
APMH Moores Rowland Advisory Pvt Ltd
Services Offered
Scouting
• Eligibility of IBC for the Corporate Debt-ors / Financial Creditor / Operational Creditors
• Training for Banking Professionals / Consultants / IP aspirants/ Faculty at ICAI WIRC.
Closure
• Acting as Resolution Monitoring Agency under IBC as per NCLT order.
• Representation in COC for stake holderin few cases
Process
• Acting as Interim Resolution Professional (IRP)- Hands on experience in few cases.
• Acting as Resolution Professional on behalf of Committee of Creditors few live cases.
• Preparation of Resolution Plan for Resolution Applicants- Few cases.
• Acting as Resolution Professionals in two cases having exposure of 1300 cr. Debt in Housing and Construction Industry And
• 900 crores in Infrastructure sector.
APMH Moores Rowland Advisory Pvt Ltd
He is one of the first 100 professionals to qualify from the IBBI. Empannelled with State Bank of India, Jammu & Kashmir Bank, Yes Bank and other Banks. He has experience in handling a joint IBC process of a listed company, an independent project as IRP, RP of a listed company having exposure of about 1300 crores in Builders and Developers space (Lok Housing and Constructions Ltd.) and one Infrastructure Company namely Pan India Utilities Distrubution Co. Ltd. having exposure of about 900Cr, debt and engaged in infrastructure field. He has also been representing a financial creditor in the CoC of a company under the Corporate Insolvency Resolution Process. (One of the big 12 cases) and preparation of Resolution plan under IBC for a builder and developer project of 300 cr. and successfully getting it approved from COC and NCLT. Presently he is working as Monitoring Agency in that case.
Experience
APMH Moores Rowland Advisory Pvt Ltd
Insolvency & BankruptcyCode, 2016
Insolvency & BankruptcyCode, 2016
APMH Moores Rowland Advisory Pvt Ltd
BankruptcyIt is a state when the
company is legally declaredincapable of paying their due
and payable bills.
Insolvency
It is a state of inabilityto pay the outstanding dues.
LiquidationIt is the process of winding
up of the entity.
Key Terms
APMH Moores Rowland Advisory Pvt Ltd
Introduction
The Code was passed by Lok Sabha on 5th May, 2016 and received the President’s accent on 28th May, 2016
Applicability
• Extends to whole of India.
• Part III of this code shall not extend to the State of Jammu and Kashmir.
• Company
• LLP
• Any other Body corporate
• Partnership Firm
• Individuals
• The Presidency Towns Insolvency Act, 1909
• The Provincial Insolvency Act, 1920
• Sick Industrial Companies (Special Provisions) Act, 1985
• SARFAESI Act, 2002
• Recovery of Debts due to Banks and Financial Institutions Act, 1993
• Companies Act, 2013
• LLP Act, 2008
APMH Moores Rowland Advisory Pvt Ltd
Institutional Infrastructure
Insolvency and Bankruptcy Board of India
Insolvency
Professional
Agency
Adjudicating
Authority
Some Current Statistics*
*As on 6th March 2018
Information
Utility
Insolvency
ProfessionalsAdjudicating Authority 3
Information Utility 1
Adjudicating Authority 1
Insolvency Professional 1672
APMH Moores Rowland Advisory Pvt Ltd
A Corporate Debtor commits a default
Corporate Insolvency Resolution Process (CIRP)
• Default :
• Min INR 1 Lakh; even a single day
• Who can file application?
• Financial Creditor
• Operational Creditor
• Corporate Debtor
• Resolution Professional (IRP/RP)
• Financial creditor and/or corporate applicant shall propose the name of an IRP in the application.
• All powers of the board and management shall vest with the IRP/RP.
• Moratorium: It shall prohibit
• Institution of suits
• Transfer of assets
• Foreclosure, recovery or enforcement under SARFAESI
• Recover of Assets.
Financial Creditor shall
individually or jointly
initiate the process by
making an application
Operational Creditor shall send
a demand notice. Within 10
days, if the operational creditor
does not receive payment or
notice of dispute, then Apply
A defaulting corporate
debtor may also file an
application for initiating
the process.
AdjudicatingAuthority i.e. NCLT
RejectAccept
Appoint an IRP
MoratoriumPeriod
APMH Moores Rowland Advisory Pvt Ltd
May Recommend an IRP for appointment
Constitute a Committee of Creditors (COC)
Corporate Insolvency Resolution Process (CIRP)
• Committee of Creditors• Consist of Financial Creditors only,
excluding related parties.• To approve plans and actions of RP.
• Resolution Plan - The resolution plan must provide for:• Payment of insolvency resolution
process costs• Repayment of the debts of
operational creditors• Management of the affairs of the
borrower after the plan is approved• Implementation and supervision of
the approved plan• Voting Power
• Only financial creditors have voting power in the committee in the ratio of debt owed
• All decision of the committee shall be approved by 75% of financial creditors
COC accepts one of the Plans COC rejects all Plans
Appointment of the resolution professional (RP) (Either Interim resolution professional can continue or a new one can be appointed by COC with
backing of 75% majority (in Value terms)
RP prepares Information Memorandum
AA accepts Resolution plan
Resolution Applicant prepares resolution plan and submit to RP. RP examines all
Resolution Plan and presents such plan to COC which meets the criteria
RP implements Resolution plan and handover management to existing/
new promoters
RP submits Resolution Plan to Adjudicating Authority approves or rejects
the plan
Corporate debtors goes into
Liquidation
AA rejects resolution plan
Corporate Debtors doesn’t comply with
resolution plan
APMH Moores Rowland Advisory Pvt Ltd
Corporate Resolution Process Time Line
No. of daysDay - ve 14
Declaremoratorium
30 to 44
0
Filling ofapplication to
NCLTNCLT to appoint interimresolution professional
IRP to constitute CoCand submit
report
Submission ofplan
Admission ofapplication
Publicannouncement
Appoint 2 registered valuer tocalculate Iiquidation value
Creditors to submit claims
Preparationof IM
CoC’ approval ofresolution plan
Application forNCLT approval
1st CoC meeting
150 170
16 6037 5114
65
Initiation ofliquidation
180
APMH Moores Rowland Advisory Pvt Ltd
Timelines As Per the Code :
180 days 270 days90 days (Maximum)
90 Days 235 days45 days (One time)
FAST TRACK :
54
32
1
0
RESOLUTION TIME Prior to IBC in India - Takes 4.5 years toWind Up an Existing Co.
0.60.811
india United state United kingdom Malaysia Singapore Japan
1.5
4.5
In years
APMH Moores Rowland Advisory Pvt Ltd
Liquidation Process
Commencementof Liquidation
Process
Moratorium
RP to Act asLiquidator unlessreplaced by AA
Formation ofLiquidation Trust
by Liquidator
Admission of a
Claim
Valuation of a
Claim
Application byLiquidator to AA forDissolution of C.Dr.
Order of
Dissolution
Distribution of Proceeds from the sale of
Liquidation Trust Assets
Complete
Liquidation
Copy of Order to beforwarded to the
Registrar
Receipt andCollections of
Claims
Verification ofClaims byLiquidator
Rejection of a
Claim
Appeal by Cr. to
AA
Communication
to Cr and Dr.
APMH Moores Rowland Advisory Pvt Ltd
Constitute a Committee of Creditors (COC)
Financial debts owed to unsecured creditors
Any remaining debts and dues
Preference shareholders, if any
Equity shareholders or partners, as the case may be
Wages and any unpaid dues owed to employees other than workmen for the period of twelve months preceding the liquidation commencement date
Liquidation Waterfall
Workmen’s dues for the period of twenty-four months preceding the liquidation commencement
date
Debts owed to a secured creditor in the event such secured creditor has relinquished security in the
manner set out in section 52
Any amount due to the Central Government and the State Government
Debts owed to a secured creditor for any amount unpaid following the enforcement of security interest
APMH Moores Rowland Advisory Pvt Ltd
Offerings
InsolvencyProfessional
Consent foracting as
the InsolvencyProfessional
Assistance inmaking Public
Announcementsand accepting
claimsVerify and
Validate ClaimsReceived fromthe Creditors
Conducting Valuation
of Stocks andother Current
Assets
ArrangingInterim Finance
Conductingmeetings of
the Committeeof Creditors
(COC)
PreparingInformation
Memorandum
Managing theadministration
of Debtors
Acceptingand analyzeResolution
Plans
Acting as aCompanyLiquidator
APMH Moores Rowland Advisory Pvt Ltd
APMH Moores Rowland Advisory Pvt Ltd
RESOLUTION PLAN ADVISORY
EVALUATION OF RESOLUTION PLAN
COC REPRESENTATION
SECRETARIAL SERVICES
ECO SYSTEM ACTIVITIES
CA Atul Mehta
Registered IP
hemant@apmh.in
CA Mitesh Katira
mitesh@apmh.in
CA Mitesh KatiraCA Hemant Mehta
IBBI Registered IP
atul@apmh.in
CA Hitesh SharmaManager:Business Advisor
hitesh@apmh.in
Key Team Members
Legal Advisor : Adv. Jitendra Jain / CFO Service: CFO Bridge.
APMH Moores Rowland Advisory Pvt Ltd
CS Amita Alke
Corporate Advisory
rameshved@apmh.in
IT-Expert
mehul@apmh.in
Mehul PawaniCA Ramesh Ved
LLB & CS
amita@apmh.in
Dhirajlal KhatriEx – Banker
Khatri@apmh.in
Key Team Members
APMH Moores Rowland Advisory Pvt Ltd
APMH Moores Rowland Advisory Pvt Ltd
E-Mail : hemant@apmh.inMob : +91 9821261193Web : www.apmh.in
Our Presence• Mumbai • Jakarta • Kuala lumpur • Beijing • Tokyo • Manila • Taipei • Bangkok • Hongkong • Singapore • Tajikistan
ThankYouRegd. OfficeD-613/614, Neelkanth Business Park, Station Road, Vidyavihar(W),Mumbai -400086, India. Tel : +91-22-25146854 /55 /56/57Ahmedabad OfficeC/O MM Advisory LLP, 404, W1, Opp. Lane PRL Colony Inside Lane of Newyork Timber Mart, Off Iscon Ambli Road, Ahmedabad.
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