Liquidation Process under the IBC PPT
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Liquidation is the process of winding up a firm by selling its assets for cash under the Insolvency and Bankruptcy Code (IBC) when insolvency resolution fails. A liquidator, appointed by the National Company Law Tribunal (NCLT) or through the Insolvency and Bankruptcy Board of India (IBBI), is responsible for valuating and selling company assets, consulting with stakeholders, and distributing proceeds. The liquidation process involves several steps, including making public announcements, preparing reports, and maintaining records.
Liquidation Process under the IBC PPT
- 1. Liquidation Process under IBC Presented By: Registrationwala
- 2. What Is Liquidation Winding up a firm through selling its assets for cash is called liquidation. Under the Insolvency and Bankruptcy law this is one of the options to resolve the insolvency of a corporate debtor.
- 3. How Is Liquidation Initiated? Liquidation is initiated after: The insolvency resolution period has been unsuccessful. Majority of COC have voted for liquidation. NCLT has decided to fast track the resolution procedure The insolvency resolution plan is not followed by the debtor. https://www.registrationwala.com/knowledge-base/insolvency/bankruptcy/liquidation- process-under-ibc
- 4. Who Is A Liquidator? A liquidator is a business expert whose job it is to valuate, and properly liquidate the company assets.
- 5. How Is A Liquidator Appointed? The insolvency professional himself has to act as the liquidator. However, the following are the steps if a new liquidator is needed. NCLT instructs IBBI for appoint a new IP. IBBI proposes the name of the new IP within 10 days. IP is appointed. NCLT formulates a plan for the IP to act as a liquidator.
- 6. What Are The Duties Of The Liquidator? Consulting with stakeholders Preparing reports Money recovery Preparing asset memorandum Asset valuation & Selling the assets Security interest realization Distributing unsold assets 1 2 3 4 5 6 7
- 7. Process Of Liquidation Insolvency resolution failure Appointment of a liquidator Liquidator makes public announcements Submission of preliminary reports Creation of progress reports
- 8. Continue Maintenance of records and books Appointing an assisting professional Recovery of assets Asset estate creation Preparation of asset memorandum
- 9. Continue Valuation of assets Realization of security interests Selling the assets Distributing the profits among claimants Distributing unsold assets among claimants