IBBI Asks Resolution Professionals To Share Copies Of Report With Creditors, Debtors
Under the Insolvency and Bankruptcy Code (IBC), resolution professionals are required to submit a report to the adjudicating authority recommending approval or rejection of an application for initiating the insolvency resolution process.
The Insolvency and Bankruptcy Board of India (IBBI) on Monday asked resolution professionals to share copies of their reports on insolvency applications with creditors and debtors of the companies concerned.
Under the Insolvency and Bankruptcy Code (IBC), resolution professionals are required to submit a report to the adjudicating authority recommending approval or rejection of an application for initiating the insolvency resolution process.
In a circular, the IBBI said it has been observed that in certain cases the resolution professionals have not shared a copy of the report with the debtor and creditor, leading to lack of equal information access among them.
"Therefore, it is hereby advised that the resolution professional shall provide a copy of the report to both debtor and creditor in all cases. This will ensure that the debtor and the creditor are well-informed about the evaluation and recommendations made by the resolution professional, thereby promoting transparency and informed decision-making," the circular said.
