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CS Professional · Insolvency and Bankruptcy - Law and Practice · Group Insolvency

A group has companies in India and Singapore, and the same insolvency court is asked to coordinate both proceedings. Under the UNCITRAL enterprise group approach, what is the main purpose of a 'planning proceeding'?

A planning proceeding under the UNCITRAL enterprise group approach is meant to facilitate a coordinated solution for the group members, such as a group reorganisation. It does not substantively merge the entities or make one centre of main interests for all, and creditors keep their role.

  1. ATo merge all group members into one legal entity automatically
  2. BTo serve as a main proceeding that is the centre of main interests for all group members
  3. CTo have the enterprise group's assets sold at once without creditor approval
  4. DTo facilitate coordinated solutions, such as a group reorganisation, for the insolvent group membersCorrect

Explanation

A planning proceeding is a proceeding in which a group insolvency solution for two or more members can be developed and coordinated. It does not merge entities or fix a common centre of main interests, and it does not bypass creditors.

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