Quick Answer: What Is A Resolution Plan?

What is debt under IBC?

The term financial debt has been defined in section 5(8) of Code “to mean a debt, alongwith interest, if any, which is disbursed against the consideration for the time value of money.” An illustrative list of transactions that would fall under this definition has also been included..

What happens after resolution plan is approved?

Once the resolution plan is approved by the Adjudicating Authority, the Corporate debtor is discharged and the said decision is binding on the creditor. Thus, the guarantor cannot be said to be discharged of its liability towards the creditor on the discharge of Principal Debtor’s liability under the IBC.

What is the point of resolution?

The resolution is often used to express the body’s approval or disapproval of something which they cannot otherwise vote on, due to the matter being handled by another jurisdiction, or being protected by a constitution.

What is the meaning of IBC?

Insolvency and Bankruptcy CodeThe Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. The Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha in December 2015.

What is the term of appointment of interim resolution professional?

(5) The term of the interim resolution professional shall not exceed thirty days from date of his appointment shall continue till the date of appointment of the resolution professional under section 22 .

What is recovery and resolution?

The term refers to planning by a financial institution and the authorities for the eventuality the firm suffers life-threatening losses.

Who approves resolution plan?

[Sec 31(1)] Approval: The responsibility of approving a resolution plan rests with the CoC, which will approve it with not less than 66 percent voting in favor of it. 1. The amount due to the operational creditors under a resolution plan shall be given priority in payment over financial creditors. 2.

Who are resolution applicants?

Resolution Applicant means a person who individually or jointly with any other person, submits a resolution plan to the resolution professional pursuant to the invitation made under clause (h) of sub-section (2) of Section 25. No changes to the IBC Ordinance have been made.

What is resolution planning for banks?

The resolution planning process in the United States is still evolving. A resolution. plan is a plan for liquidating, reorganizing, recapitalizing or otherwise resolving. a systemically important financial institution (“SIFI”) that has reached the point. of insolvency, non-viability or failure.

What resolution means?

English Language Learners Definition of resolution : the act of finding an answer or solution to a conflict, problem, etc. : the act of resolving something. : an answer or solution to something. : the ability of a device to show an image clearly and with a lot of detail.

What is a resolution entity?

Entity resolution is the process of probabilistically identifying some real thing based upon a set of possibly ambiguous clues. Humans have been performing entity resolution throughout history.

Does a financial creditor include a secured creditor?

d. Section 2 (30): “secured creditor” means a creditor in favour of whom security interest is created; … Section 5 (7): “financial creditor” means any person to whom a financial debt is owed and includes a person to whom such debt has been legally assigned or transferred to; f.

What is a resolution plan under IBC?

A resolution plan is a proposal that aims to provide a resolution to the problem of the corporate debtor’s insolvency and its consequent inability to pay off debts. It needs to be approved by the committee of creditors (“COC”), and comply with mandatory requirements prescribed in IBC.

What is a resolution professional?

“Resolution Professional”, means an insolvency professional appointed to conduct the corporate insolvency resolution process and includes an interim-resolution professional; Provisions Relating to appointment of resolution Professional. The committee of creditors in its first meeting may.

Can a financial creditor be a resolution applicant?

The resolution plan which is approved by the committee of creditors is submitted to the NCLT for approval. … As such, a resolution applicant could have been any person – a creditor, a promoter, a guarantor, a prospective investor, an employee, or any other person.