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CS Professional · Corporate Restructuring, Valuation and Insolvency · Resolution Strategies

In the pre-packaged insolvency resolution process of Ganga Polymers Ltd, the resolution professional has discovered that the board of directors has breached its obligations under the pre-pack Chapter. Which duty under Section 54F(2) applies to this discovery?

The resolution professional must inform the committee of creditors about the breach. Section 54F(2)(e) makes this a specific duty whenever the board of directors or partners breach their obligations under the pre-pack Chapter. It is separate from confirming claims or preparing the information memorandum.

  1. AConfirming the list of claims submitted by the corporate debtor
  2. BInforming the committee of creditors of the breach of the board's obligationsCorrect
  3. CFiling an application for liquidation directly with the Adjudicating Authority
  4. DPreparing the preliminary information memorandum

Explanation

Section 54F(2)(e) requires the resolution professional to inform the committee of creditors if the Board of Directors or partners breach their obligations under the Chapter and the rules and regulations. Confirming claims is a separate duty, and the preliminary information memorandum is submitted by the corporate debtor, with the professional preparing the information memorandum from it.

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