The Insolvency and Bankruptcy Board of India (IBBI) has amplified its efforts to expedite insolvency resolutions by finalizing a provisional list of 787 insolvency professionals (IPs), a substantial increase from the 400 listed in June. This comprehensive list, complemented by 31 insolvency professional entities (IPEs), is poised to be presented to the adjudicating authority. The move aims to streamline the appointment process for overseeing resolution or liquidation cases promptly.
These IPs are pivotal figures as resolution professionals, liquidators, or bankruptcy trustees in the insolvency ecosystem. The expansion seeks to address administrative delays in IP appointments, thereby accelerating insolvency resolution processes and safeguarding the value of stressed assets, as articulated by a senior official.
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This initiative also responds to the regulator’s need to recommend an IP only after receiving a reference from the National Company Law Tribunal (NCLT) during a corporate insolvency resolution process (CIRP).
The IBBI’s June initiative marked the first consolidated list, encompassing professionals eligible for appointments in various capacities under the Insolvency and Bankruptcy Code (IBC). The IBBI plans to periodically renew this list.
As of September 2023, IBBI data indicates that 67% of insolvency cases exceeded the 270-day timeframe. An additional 13% surpassed 180 days but remained under 270 days. Notably, creditors have recovered Rs 3.16 trillion, constituting 31.85% of their admitted claims from the resolution of 808 cases, reinforcing the efficacy of the IBBI’s insolvency resolution framework.
