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CA Hemant MehtaPracticing since 1992

Partner with APMH & Associates LLPB.Com, F.C.A., Master in Business Finance - ICAI,

DISA – ICAI Certified Concurrent Auditor for

Banks by ICAI

(Registered Insolvency Professional)

Registration No. # IBBI / IPA-001/IP-P00027/2016-17/10060

APMH Moores Rowland Advisory Pvt Ltd

Services Offered

Scouting

• Eligibility of IBC for the Corporate Debt-ors / Financial Creditor / Operational Creditors

• Training for Banking Professionals / Consultants / IP aspirants/ Faculty at ICAI WIRC.

Closure

• Acting as Resolution Monitoring Agency under IBC as per NCLT order.

• Representation in COC for stake holderin few cases

Process

• Acting as Interim Resolution Professional (IRP)- Hands on experience in few cases.

• Acting as Resolution Professional on behalf of Committee of Creditors few live cases.

• Preparation of Resolution Plan for Resolution Applicants- Few cases.

• Acting as Resolution Professionals in two cases having exposure of 1300 cr. Debt in Housing and Construction Industry And

• 900 crores in Infrastructure sector.


He is one of the first 100 professionals to qualify from the IBBI. Empannelled with State Bank of India, Jammu & Kashmir Bank, Yes Bank and other Banks. He has experience in handling a joint IBC process of a listed company, an independent project as IRP, RP of a listed company having exposure of about 1300 crores in Builders and Developers space (Lok Housing and Constructions Ltd.) and one Infrastructure Company namely Pan India Utilities Distrubution Co. Ltd. having exposure of about 900Cr, debt and engaged in infrastructure field. He has also been representing a financial creditor in the CoC of a company under the Corporate Insolvency Resolution Process. (One of the big 12 cases) and preparation of Resolution plan under IBC for a builder and developer project of 300 cr. and successfully getting it approved from COC and NCLT. Presently he is working as Monitoring Agency in that case.

Experience


Insolvency & BankruptcyCode, 2016

Insolvency & BankruptcyCode, 2016


BankruptcyIt is a state when the

company is legally declaredincapable of paying their due

and payable bills.

Insolvency

It is a state of inabilityto pay the outstanding dues.

LiquidationIt is the process of winding

up of the entity.

Key Terms


Introduction

The Code was passed by Lok Sabha on 5th May, 2016 and received the President’s accent on 28th May, 2016

Applicability

• Extends to whole of India.

• Part III of this code shall not extend to the State of Jammu and Kashmir.

• Company

• LLP

• Any other Body corporate

• Partnership Firm

• Individuals

• The Presidency Towns Insolvency Act, 1909

• The Provincial Insolvency Act, 1920

• Sick Industrial Companies (Special Provisions) Act, 1985

• SARFAESI Act, 2002

• Recovery of Debts due to Banks and Financial Institutions Act, 1993

• Companies Act, 2013

• LLP Act, 2008


Institutional Infrastructure

Insolvency and Bankruptcy Board of India

Insolvency

Professional

Agency

Adjudicating

Authority

Some Current Statistics*

*As on 6th March 2018

Information

Utility

Insolvency

ProfessionalsAdjudicating Authority 3

Information Utility 1

Adjudicating Authority 1

Insolvency Professional 1672


A Corporate Debtor commits a default

Corporate Insolvency Resolution Process (CIRP)

• Default :

• Min INR 1 Lakh; even a single day

• Who can file application?

• Financial Creditor

• Operational Creditor

• Corporate Debtor

• Resolution Professional (IRP/RP)

• Financial creditor and/or corporate applicant shall propose the name of an IRP in the application.

• All powers of the board and management shall vest with the IRP/RP.

• Moratorium: It shall prohibit

• Institution of suits

• Transfer of assets

• Foreclosure, recovery or enforcement under SARFAESI

• Recover of Assets.

Financial Creditor shall

individually or jointly

initiate the process by

making an application

Operational Creditor shall send

a demand notice. Within 10

days, if the operational creditor

does not receive payment or

notice of dispute, then Apply

A defaulting corporate

debtor may also file an

application for initiating

the process.

AdjudicatingAuthority i.e. NCLT

RejectAccept

Appoint an IRP

MoratoriumPeriod


May Recommend an IRP for appointment

Constitute a Committee of Creditors (COC)

Corporate Insolvency Resolution Process (CIRP)

• Committee of Creditors• Consist of Financial Creditors only,

excluding related parties.• To approve plans and actions of RP.

• Resolution Plan - The resolution plan must provide for:• Payment of insolvency resolution

process costs• Repayment of the debts of

operational creditors• Management of the affairs of the

borrower after the plan is approved• Implementation and supervision of

the approved plan• Voting Power

• Only financial creditors have voting power in the committee in the ratio of debt owed

• All decision of the committee shall be approved by 75% of financial creditors

COC accepts one of the Plans COC rejects all Plans

Appointment of the resolution professional (RP) (Either Interim resolution professional can continue or a new one can be appointed by COC with

backing of 75% majority (in Value terms)

RP prepares Information Memorandum

AA accepts Resolution plan

Resolution Applicant prepares resolution plan and submit to RP. RP examines all

Resolution Plan and presents such plan to COC which meets the criteria

RP implements Resolution plan and handover management to existing/

new promoters

RP submits Resolution Plan to Adjudicating Authority approves or rejects

the plan

Corporate debtors goes into

Liquidation

AA rejects resolution plan

Corporate Debtors doesn’t comply with

resolution plan


Corporate Resolution Process Time Line

No. of daysDay - ve 14

Declaremoratorium

30 to 44

0

Filling ofapplication to

NCLTNCLT to appoint interimresolution professional

IRP to constitute CoCand submit

report

Submission ofplan

Admission ofapplication

Publicannouncement

Appoint 2 registered valuer tocalculate Iiquidation value

Creditors to submit claims

Preparationof IM

CoC’ approval ofresolution plan

Application forNCLT approval

1st CoC meeting

150 170

16 6037 5114

65

Initiation ofliquidation

180


Timelines As Per the Code :

180 days 270 days90 days (Maximum)

90 Days 235 days45 days (One time)

FAST TRACK :

54

32

1

0

RESOLUTION TIME Prior to IBC in India - Takes 4.5 years toWind Up an Existing Co.

0.60.811

india United state United kingdom Malaysia Singapore Japan

1.5

4.5

In years


Liquidation Process

Commencementof Liquidation

Process

Moratorium

RP to Act asLiquidator unlessreplaced by AA

Formation ofLiquidation Trust

by Liquidator

Admission of a

Claim

Valuation of a

Claim

Application byLiquidator to AA forDissolution of C.Dr.

Order of

Dissolution

Distribution of Proceeds from the sale of

Liquidation Trust Assets

Complete

Liquidation

Copy of Order to beforwarded to the

Registrar

Receipt andCollections of

Claims

Verification ofClaims byLiquidator

Rejection of a

Claim

Appeal by Cr. to

AA

Communication

to Cr and Dr.


Constitute a Committee of Creditors (COC)

Financial debts owed to unsecured creditors

Any remaining debts and dues

Preference shareholders, if any

Equity shareholders or partners, as the case may be

Wages and any unpaid dues owed to employees other than workmen for the period of twelve months preceding the liquidation commencement date

Liquidation Waterfall

Workmen’s dues for the period of twenty-four months preceding the liquidation commencement

date

Debts owed to a secured creditor in the event such secured creditor has relinquished security in the

manner set out in section 52

Any amount due to the Central Government and the State Government

Debts owed to a secured creditor for any amount unpaid following the enforcement of security interest


Offerings

InsolvencyProfessional

Consent foracting as

the InsolvencyProfessional

Assistance inmaking Public

Announcementsand accepting

claimsVerify and

Validate ClaimsReceived fromthe Creditors

Conducting Valuation

of Stocks andother Current

Assets

ArrangingInterim Finance

Conductingmeetings of

the Committeeof Creditors

(COC)

PreparingInformation

Memorandum

Managing theadministration

of Debtors

Acceptingand analyzeResolution

Plans

Acting as aCompanyLiquidator



RESOLUTION PLAN ADVISORY

EVALUATION OF RESOLUTION PLAN

COC REPRESENTATION

SECRETARIAL SERVICES

ECO SYSTEM ACTIVITIES

CA Atul Mehta

Registered IP

[email protected]

CA Mitesh Katira

[email protected]

CA Mitesh KatiraCA Hemant Mehta

IBBI Registered IP

[email protected]

CA Hitesh SharmaManager:Business Advisor

[email protected]

Key Team Members

Legal Advisor : Adv. Jitendra Jain / CFO Service: CFO Bridge.


CS Amita Alke

Corporate Advisory

[email protected]

IT-Expert

[email protected]

Mehul PawaniCA Ramesh Ved

LLB & CS

[email protected]

Dhirajlal KhatriEx – Banker

[email protected]

Key Team Members



E-Mail : [email protected] : +91 9821261193Web : www.apmh.in

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ThankYouRegd. OfficeD-613/614, Neelkanth Business Park, Station Road, Vidyavihar(W),Mumbai -400086, India. Tel : +91-22-25146854 /55 /56/57Ahmedabad OfficeC/O MM Advisory LLP, 404, W1, Opp. Lane PRL Colony Inside Lane of Newyork Timber Mart, Off Iscon Ambli Road, Ahmedabad.

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