CS Professional · Insolvency and Bankruptcy - Law and Practice · Group Insolvency
Kaveri Steels Pvt Ltd and its parent have separate insolvency proceedings in India. The two resolution professionals want to cooperate by sharing information and aligning timelines, while keeping each estate legally separate. Which approach describes this?
This is procedural coordination: the proceedings and estates remain separate, but insolvency representatives cooperate through information sharing and aligned timelines. Substantive consolidation differs because it pools the assets and liabilities of group members, which the professionals in this case do not intend.
- ASubstantive consolidation
- BProcedural coordination of the separate proceedingsCorrect
- CCross-guarantee voiding
- DCompulsory amalgamation under a scheme
Explanation
Procedural coordination keeps entities and estates distinct but harmonises administration, such as joint hearings and information sharing. Substantive consolidation would pool assets and liabilities, which is not intended here.
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