Corporate Insolvency Resolution Process

Aegis provides service to Financials Creditors, Operational Creditors, Corporate debtor, support services to Interim Resolution Professional or Resolution Professional for initiating and implementing the Corporate Insolvency Resolution Process (CIRP) and provide all assistance to preserve and protect the assets of the corporate debtor including continuing the business of the Corporate Debtor as going concern in order to have the best value for all stakeholders.

The team provides all services as required and specified under the Insolvency & Bankruptcy Code, 2016 including but not limited to:

  • Preparation and issuance of public announcement intimating initiation of CIRP and inviting claims.

  • Written communication to all promoters, directors & Key managerial persons of the Corporate Debtor, Bankers, employees and workmen’s, auditors, other regulatory bodies like MCA, ROC, SEBI, Department of Income Tax etc. to intimate Initiation of CIRP for Corporate Debtor and to seek information about Corporate Debtor as required.

  • Taking control over the management of the Corporate Debtor from the existing Board of Directors of the Company pursuant to the cessation of their powers.

  • Taking physical and virtual control and custody over operations and assets of the Corporate Debtor and maintaining its control and running the Corporate Debtor as a going concern on a best effort basis. Activities include:

  • To identify and visit all locations of the businesses and assets of the Corporate Debtor
  • To prepare a database of assets or businesses of Corporate Debtor including but not limited to pictures and videos of assets.
  • To insure and depute security guards the assets to ensure protection of assets and to prevent any fraudulent or unauthorized removal of property of the Corporate Debtor

  • Represent and act on behalf of the corporate debtor with third parties, exercise rights for the benefit of the corporate debtor in judicial, quasi-judicial or arbitration proceedings.

  • Claim Verification:

  • To receive, collate, verify and admit or reject claims of financial creditors, operational creditors, workmen and employees, claims for statutory dues, other stakeholders etc.
  • To prepare a physical and digital database of claims received with regards to documentation, category (secured or unsecured), priority u/s 53, determination and verification of security interest, inter-creditor arrangement over security interest, etc. 

  • Constitution the Committee of Creditors as per the provisions of the code and to convene meetings of the Committee of Creditors, as and when required. Activities include:

  • To prepare and circulate all notices, agenda and information to convene the Committee of Creditors.
  • Preparation and circulation of Minutes of meetings to the Committee of creditors.

  • Appointment of professionals and experts for the process:

  • Appointing two registered valuers to determine the fair value and the liquidation value of the corporate debtor.
  • To appoint professionals and experts for the process such as Transaction Auditors for determination of avoidable transactions u/s 43, 45, 50 and 66 of the Code; legal counsels, internal auditors, if approved;  statutory auditors, if required and approved; industry expert, process consultant, if required; etc. and to get their fee approved from Committee of Creditors.

  • Raising interim finance subject to approval of Committee of Creditors, if required.

  • Transaction audit and filling an application with Hon’ble NCLT for avoidance of transactions u/s 43, 45, 50 & 66.

  • To prepare Information Memorandum of the Company.

  • Sharing of Information Memorandum with the Committee of Creditors and potential resolution applicants and obtaining necessary undertakings from such persons

  • Resolution plan process:

  • Preparation of Expression of Interest (EOI) document.
  • Preparation and finalization of Eligibility criteria for prospective resolution applicants in consultation with CoC
  • Receiving and reviewing the EOI’s received to check whether applicants meet eligibility criteria
  • Facilitate execution of confidentiality undertaking
  • Preparation of virtual data room (“VDR”) in order to facilitate a competitive due diligence process
  • Due diligence with respect to applicability of Section 29A of the Code in order to provide a prima facie view by the RP.
  • Expression of Interest, call for resolution plans, release approved bid evaluation criteria,
  • Finalization of list of PRA’s from whom Resolution Plans may be invited
  • Preparation and circulation of Request for resolution Plan (RFRP)
  • Preparation and finalization of Evaluation matrix in consultation with CoC
  • To evaluate all the resolutions plans received from various Resolution applicant and draw up a comparative analysis of the same.
  • Present resolution plans so received from the Resolution applicants to the Committee of Creditors for their due consideration.
  • To ensure compliance of the provisions of the code with the considered resolution plans.
  • Submission of the approved resolution plan to the Adjudicating Authority (NCLT) for approval.