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CS Professional · Corporate Restructuring, Valuation and Insolvency · Preparation and Approval of Resolution Plan

In a pre-packaged process, the resolution plan selected under the competition stage is not considered significantly better, so it competes with the base plan and one of them is selected for approval. The CoC then fails to approve the selected plan. What must the resolution professional do?

The resolution professional must file an application for termination of the pre-packaged insolvency resolution process. This follows where the plan selected after competition between the chosen plan and the base plan is not approved by the committee of creditors.

  1. AInvite fresh plans again indefinitely
  2. BFile an application for termination of the pre-packaged insolvency resolution processCorrect
  3. CSubmit the plan to the Adjudicating Authority anyway
  4. DConvert the process into voluntary liquidation directly

Explanation

The proviso to section 54K(12) states that where the plan selected under sub-section (11) is not approved by the CoC, the resolution professional shall file an application for termination of the pre-packaged insolvency resolution process in the specified form and manner.

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