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

The committee of creditors of Sundaram Forgings Ltd approves a plan and wants it supervised after approval. Under the Regulations as given, what is the correct position on the monitoring committee's reporting?

The monitoring committee must submit quarterly reports to the Adjudicating Authority on the status of implementation of the resolution plan. The Regulations do not provide for annual reports to the Board or monthly reports to operational creditors.

  1. AIt must submit quarterly reports to the Adjudicating Authority on the status of implementation of the planCorrect
  2. BIt must submit annual reports to the Insolvency and Bankruptcy Board only
  3. CIt must submit monthly reports to the operational creditors only
  4. DIt need not report to anyone once the plan is approved

Explanation

Regulation 38(4)(c) says the monitoring committee shall submit quarterly reports to the Adjudicating Authority on implementation status. Annual or monthly reporting to other bodies is not what the text provides.

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