CS Professional · Corporate Restructuring, Valuation and Insolvency · Resolution Strategies
Himalaya Steels Ltd has several distinct plants in CIRP. Different bidders submit separate plans: Bidder A for the Raipur plant only and Bidder B for the Bhilai plant only. What does Regulation 37 of the CIRP Regulations say on this?
Regulation 37 permits sale of one or more assets to one or more successful resolution applicants who submit plans for those assets, and the plan must also state how the remaining assets will be dealt with. Asset-wise plans are therefore allowed during CIRP without a single bidder for everything.
- AA plan may be approved only if one applicant bids for all assets together
- BThe plan may provide for sale of one or more assets to one or more successful resolution applicants submitting plans for such assets, and for the manner of dealing with the remaining assetsCorrect
- CSuch plans are valid only if the remaining assets are automatically transferred to the largest creditor
- DSeparate plans for assets are allowed only after the CIRP period has expired
Explanation
Regulation 37 includes sale of one or more assets of the corporate debtor to one or more successful resolution applicants submitting plans for such assets, together with the manner of dealing with the remaining assets. So piecemeal plans are allowed during CIRP. The other options add conditions not found in the text.
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