Insolvency and Bankruptcy Consulting Services

The term company refers to an incorporation or institution that may be subject to insolvency or Bankruptcy, and the term debtor refers to an individual subject to insolvency. The practice of insolvency and Bankruptcy involves advising creditors, debtors and investors. At Enterslice, our insolvency experts assist in managing the debtor's affairs, business and property along with the company's affairs, business and property during the insolvency process. Our insolvency practitioners act as agents of the Insolvency Company or debtor and help manage the company's or debtor's business affairs and property. We assist with specific matters under the Insolvency and Bankruptcy Code, 2016, and assist creditors, acquirers, and liquidators in several leading insolvency matters. Our industry experts have in-depth knowledge and experience in finance, restructuring, dispute resolution, and project advisory, among many more, which enables us to deal with diverse aspects of insolvency and Bankruptcy.

What is Insolvency and Bankruptcy?

Insolvency refers to a financial state when liabilities are more than assets, whereas bankruptcy is the entire legal process that starts when the debtor is unable to repay its debts. Insolvency may further lead to bankruptcy if not resolved using the negotiation or restricting process. An insolvency professional is a person officially recognized and appointed by the National Company Law Tribunal to act as a court officer to deal with diverse processes, including corporate insolvency resolution, liquidation under the service of insolvency and Bankruptcy. With the passing of the Insolvency and Bankruptcy Code in 2016, we have moved towards a new regime of liquidation process. At Enterslice, We have a team of industry experts who are well experienced and know the legal protocol covers a whole spectrum of insolvency and resolution, including the initiation of insolvency proceedings, filing of claims, handling the insolvency matters before the competent authority (NCLT) National Company Law Tribunals, National Company Law Appellate Tribunal (NCLAT) and Supreme Court of India. We assist and regularly represent a wide range of insolvency matters ranging from individuals and corporate clients, including public and private sector banks, NBFCs, Resolution Applicants, home-buyers, liquidators, operational creditors, corporate debtors, and many more. Our client-centric approach to offering comprehensive and customized insolvency solutions always helps clients to secure favourable outcomes. The Insolvency and Bankruptcy Code 2016 turned out to be a game changer in the banking system and is more likely to deal with matters of insolvency and liquidation proceedings within a time-bound and efficient manner. To comply with the specific provision of the insolvency code, the insolvency professional must be equipped with forensic skills. At Enterslice, our expertise will help insolvency and resolution professionals comply with the statutory obligations in various ways under IBC.

Our Insolvency and Bankruptcy Advisory Services for Businesses

At Enterslice, we cover a wide range of insolvency and bankruptcy practices ranging from restructuring under formal and informal procedures for the revival of corporates during the early sign of distress process involving actual liquidation and winding of businesses. Our experts at Enterslice assist businesses at the pre-insolvency stage or during the corporate insolvency resolution process.

Our integrated approach addresses various insolvency matters such as acquisitions, deal structuring, drafting the resolution plan, initiating legal and due diligence, and conducting meetings with the resolution professionals to address specific concerns and clarify doubts. Our expertise in representing acquirers, stressed assets funds, international and domestic banks, financial institutions, trade and finance companies, lenders, issuers, and borrowers in diverse networks of banking and financing transactions.

Our experts help in structuring, Paper works, recovery litigation proceedings, assets control and reconstructions, debt recovery, and negotiation on various aspects of secured and unsecured financing transactions.   We are determined to provide seamless advisory on Indian laws in relation to border contentious and non-contentious problems of insolvencies, formal restructuring and court settlements.

About Insolvency Professional Services

Insolvency Resolution Process (CIRP)

The Insolvency resolution process is a time-bound process in which the financial stress of any insolvent company is resolved through the removal of their existing promoters and providing the control of the company to the financial creditors through the insolvency experts. Moreover, this process involves various announcements, including public call claims, the constitution of the committee of creditors, preparation of an information memorandum, examination of the questionable transactions, inviting expression from investors and the submission of a resolution plan from the end of insolvency experts which requires to be approved by the National Company Law Tribunal. As the concerned approval is received, the insolvent company is further handed to the new investor.

Liquidation of Corporate Debtor

The company underwent liquidation through a court order. In case the efforts to revive the corporate insolvency resolution process fail, then the assets of the concerned company are likely to be sold through public announcements and calls to claims. A stakeholders consulting committee is constituted after receiving claims, and the assets of the concerned company are kept for public auction. Further, the bidders submit their bids to liquidators, assets are sold out to the highest bidder, and certificates of sale are issued accordingly.

Insolvency of personal guarantors to the corporate Debtor 

Financial creditors invoke personal guarantees for the unrecovered amount, which is due from the end of the company under the CIRP process. The entire process time is for 180 days with no further extension. NCLT admits the petition moratorium starts, insolvency professionals start with the process, and the concerned insolvency advisors assist in the entire liquidation process for successful completion. Claims from creditors are invited using public announcements. Certain assets and debts left untouched and questionable transactions are to be examined accordingly. Further, the personal guarantor declares his assets and income to concern RP. Later, the RP draft a repayment plan, which is required to be approved using 3/4^th in value by creditors. Later, the plan will be improved by the NCLT, and the implementation of such a plan will be supervised accordingly. 

About Bankruptcy & pre-packaged insolvency process

In case the repayment plan of personal guarantors is duly rejected or approved but not implemented, then the NCLT may order the Bankruptcy of individuals or partnership firms and thus, the bankruptcy trustee is duly appointed. Public notice for claims from creditors is issued, and their meeting takes place. Now, the trustee investigates the whole affairs and realizes the estate to distribute the estate of the bankrupt. We offer secretarial and advisory support to Bankruptcy trustees in this regard across the country.

We also offer services related to pre-packaged insolvency. Corporate formulates a base resolution plan before the process starts. Insolvency experts are required to submit a base plan to the creditor committee. COC can invite more base plans to compete with a base resolution plan. During this stage, NCLT is required to accept the petition, which must be completed within the time frame of 120 days. Later, public announcements are to be made accordingly to invite for claims. The creditors committee gets constituted, and later, the plan prepared by the committee needs to be approved by the NCLT. 

Understanding Resolution Plans

The resolution plans are crucially important in any corporate insolvency resolution process (CIRP) as a new investment and infusion of funds helps the ailing company process through a successful resolution plan. 

Eligibility and Evaluation

Examining the expression of Interest (EOIs) received during the corporate insolvency resolution process (CIRP) through the insolvency experts against the eligibility conditions are approved by COC. Prepare a plan for evaluation and request a resolution plan (RFRP) Document. On behalf of resolution experts, compliance on section 29A along with other insolvency and bankruptcy provisions, giving scores on the evaluation matrix and issuing a letter of intent for submission of performance bank guarantee, filing of approval plans with NCLT, and further supervising the approved resolution plan under IBC code. 

Implementation

Holding a preliminary meeting of the supervising committee to arrange upfront payments by resolution applicants within the stipulated timeline. Communication with various authorities concerning the implementation of approved plans. Interim handing over control and custody of corporate debtor to the resolution applicant to initiate the day-to-day affairs and monitor production and finance data per the plan's projections. Holding periodic committee meetings and circulating minutes ensures the remaining actions or payments are to be made according to the plan within the specified timeline.

Legal Assistance for Insolvency and Bankruptcy Process.

The insolvency process involves a huge number of legal proceedings, including submissions made before NCLT at every step. At Enterslice, we have a team of professionals to cater to the services, including drafting, representation appearances, and due diligence. Our team is well-versed in drafting and vetting demand notices to the debtor under section 8. We draft and file applications under sections 7, 9, and 10, preliminary objections, dissolution application, liquidation personal guarantor's application made before the NCLT, and drafts a scheme of compromise and arrangement under the Companies Act. Our experts facilitate representing companies, resolution professionals, liquidators, and the committee of creditors in applications to be filed before the adjudicatory body under the IBC code. We also conduct a due diligence process to check and monitor strict compliance with regulatory legal norms by the resolution professional, liquidators, and committee of creditors.

Process Advisors to Resolution Professional

Individual resolution professionals are required to be monitored and guided regularly to handle complex cases, including claim verification, holding committee of creditors meetings, drafting informative memorandum, evaluation matrix and request for resolution plan Documents, checking eligibility criteria under section 29A, examining the resolution plan for compliance with many more during the entire process of resolution. We act as an insolvency assisting consulting agency to provide our expert advice.

We advise Liquidators in the Liquidation Process

The liquidation process is more rigid and complex as the laws to deal with them are unwritten. Handling the entire liquidation process with the concerned compromise scheme or arrangement is complex and puzzling. Disbursement of liquidation proceeds with the priority of charges that are always in question. Our experts have practical knowledge and appropriate solutions for all problems. Do not worry; connect with us today. We are here to safeguard liquidators. 

We Manage Corporate Debtor Cash Flow

Our expertise ensures all the legitimate inflows come to the corporate debtor, priorities must be set, fund movement should be duly accounted for, applicable taxes are to be considered, and the financial statement output of the organization and workforce needs must be monitored properly. Being a resolution professional with no experience, our experts can offer advice on corporate insolvency resolution and liquidation process to enhance your ability to execute it properly without errors and mistakes.

Debt Syndication

Assist the resolution applicants (investors) in participating by their preference under the insolvency and bankruptcy code, guide them to participate in EOI and RFRP, ensure their resolution plan is approved, and arrange sources of funds to proceed towards approved resolution plans.

Group Insolvency of Corporate Debtors

Although the law on this subject has yet to be passed, NCLTs allowed group insolvency, such as Videocon industries and reliance communication. Our experts can provide guidance and proper assistance for companies that wish to file the insolvency of a group and offer legal advisory to submit and represent their matters.

Our experts Assist in the Insolvency and Bankruptcy Processes.

We knew it was impossible for an insolvency professional to single-handedly manage all diverse processes of CIRP or liquidation. We offer backend services, including audits, compliance checks, legal Paper works, insurance, and other interrelated assistance throughout the entire process. Our clients can easily avail a wide range of services as we offer Banks and other financial institutions as resolution professionals to execute the corporate insolvency process.

We are determined to offer advisory on every step during CIRP or liquidation, which includes the preparing and filing of concerned claims, claim verification, process advisors, cash flow management, financial advisors, forensic auditors, preparing information memorandum, resolution plan, evaluation matrix, and offer advisory to implement the resolution plan, conduct the meeting of CoC/SCC, and helps in the auction of sale assets. 

We are supposed to help the prospective resolution applicants prepare a resolution plan presentation and initiate negotiation with the concerned committee of creditors to enhance the offer to their satisfaction. Banks and other institutions can avail services to deliver lectures or holding workshops on various aspects of insolvency and bankruptcy code, 2016.

Our industry experts guide new CAs, CSs, Management consultants, and many more to become insolvency professionals and help prepare the required level to write exams. We are also supporting new insolvency professionals in learning the techniques of marketing with banks and financial institutions to get empanelment to fulfil their objective to have a task assignment of CIRP liquidation in their names.

We are supposed to Help Professionals.

Forensic Claims review

We can assist in forensic claims review and adjudication under sections 18 and 35 to the resolution professional. Utilizing our forensic techniques, including claim collation and administration process, helps to determine the authenticity of proofs and assess unliquidated claims or damages.

Assist to monitor

Our experts can help and assist RPs in examining the ongoing transactions during insolvency resolution to identify potential diversion indicators and funds or fraudulent transactions.

Asset tracing (section 18)

We utilize innovative tools and resources to assess the financial system and reconstruct records to check where funds are used to create undisclosed assets. We verify the asset's ownership through enquiries or Documented evidence with many more tricks.

Due diligence

Our experts can easily assist RPs and creditor committees in initiating the due diligence process using our extensive experience to assess and analyze the integrity, reputation and ownership structure of the company and the principal shareholder.