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CS Professional · Corporate Restructuring, Valuation and Insolvency · Application for Corporate Insolvency Resolution Process

Sunrise Textiles Ltd is undergoing a pre-packaged insolvency resolution process (PPIRP). On the pre-packaged insolvency commencement date, the Adjudicating Authority admits the application. Until when does the order of moratorium declared under the PPIRP chapter remain in effect?

The moratorium declared in a pre-packaged insolvency resolution process runs from the date of the Adjudicating Authority's order until the date the pre-packaged process period ends. It is not tied to constituting the creditors' committee, progress reports, or a fixed ninety-day period.

  1. AUntil the date on which the pre-packaged insolvency resolution process period comes to an endCorrect
  2. BUntil the committee of creditors is first constituted
  3. CUntil the resolution professional files the first progress report
  4. DUntil ninety days after the order of admission irrespective of the process period

Explanation

Under section 54E(2), the moratorium has effect from the date of the order until the date on which the PPIRP period comes to an end. The other options introduce events or fixed periods that the Code does not prescribe for ending the moratorium.

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