IBBI Issues Discussion Paper to Streamline Insolvency Resolution and Strengthen Creditor Oversight

The Insolvency and Bankruptcy Board of India (IBBI) has issued a discussion paper proposing key amendments to improve the Corporate Insolvency Resolution Process (CIRP).

Key proposals include mandating regular reviews of operational expenses and leased properties by the Committee of Creditors (CoC), allowing joint hearings and shared resolution professionals for interconnected entities, and requiring corporate debtors to submit a Statement of Affairs under Section 7 of the IBC.

The paper also seeks to improve resolution plan transparency, restrict post-approval modifications, and remove the sale of corporate debtors as a going concern under liquidation norms.

Public comments are invited until February 25.