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21st June, 2024 Invitation of Public comments: Format for progress report during Liquidation process (258.72 KB)

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Insolvency and Bankruptcy Board of India 21st June, 2024 Format for progress report during Liquidation process Regulation 15 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 mandates the submission of progress reports by the liquidator during the liquidation process. Sub-regulation (1) specifies that the liquidator must submit Progress Reports, in the format stipulated by the Board, to both the Adjudicating Authority and the Board. Additionally, a circular dated 22 February 2024 requires that the liquidator share the progress reports with the members of the Stakeholders’ Consultation Committee, provided they have given a confidential undertaking. 2. Regulation 15 outlines that the progress report must include various pieces of information. This includes details on the appointment, tenure, and cessation of appointment of professionals; the settlement of the list of stakeholders; the status of any property that remains to be sold and realized; distributions made to stakeholders; and the distribution of unsold property to stakeholders. Additionally, the report should cover the fee due to and received by the liquidator, the remuneration or fee paid to professionals appointed by the liquidator, developments in any material litigation involving the corporate debtor, and the filing and developments in applications for avoidance of transactions. 3.

professionals appointed by the liquidator, developments in any material litigation involving the corporate debtor, and the filing and developments in applications for avoidance of transactions. 3. To streamline the process and ensure uniformity in the structure of these reports filed by the liquidators before the Adjudicating Authority, it would be beneficial for Insolvency Professionals (IPs) and the Adjudicating Authority if there were a standardized format. A draft of the format for the progress report is enclosed as an Annexure.
4. The Board accordingly solicits comments on the format. Comments may be submitted electronically by 12th July 2024. For providing comments, please follow the process as under: (i) Visit IBBI website, www.ibbi.gov.in; (ii) Select ‘Public Comments’; and then select ‘Format for progress report during Liquidation process'; (iii) Provide your Name, and Email ID; (iv) Select the stakeholder category, namely, - a) Corporate Debtor; b) Personal Guarantor to a Corporate Debtor; c) Proprietorship firm; d) Partnership firm; e) Creditor to a Corporate Debtor; f) Insolvency Professional; g) Insolvency Professional Agency;

tor; b) Personal Guarantor to a Corporate Debtor; c) Proprietorship firm; d) Partnership firm; e) Creditor to a Corporate Debtor; f) Insolvency Professional; g) Insolvency Professional Agency;

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h) Insolvency Professional Entity; i) Academics; j) Investor; or k) Others. (v) Select the kind of comments you wish to make, namely, a) General Comments; or b) Specific Comments. (vi) If you have selected ‘General Comments’, please select one of the following options: a) Inconsistency, if any, with the regulations; b) Inconsistency, if any, with Code/rules; c) Any difficulty in implementation;
d) Any provision that should have been provided, but has not been provided; or e) Any provision that has been provided but should not have been provided. And then write comments under the selected option. (vii) If you have selected ‘Specific Comments’, please select para and write comments under the selected para. (viii) You can make comments on more than one para, by clicking on More Comments and repeating the process outlined above from point 4(v) onwards. (ix) Click ‘Submit’, if you have no more comments to make.

u can make comments on more than one para, by clicking on More Comments and repeating the process outlined above from point 4(v) onwards. (ix) Click ‘Submit’, if you have no more comments to make.

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Annexure Progress Report of the Corporate Debtor for the quarter ending MM/YY

A. Details of Corporate Debtor: S. No. Particulars Details 1. Date of initiation of liquidation process

Name of the Liquidator

Whether the Corporate Debtor is being maintained as a going concern as on date? (Yes/No) 4. Valuation during CIRP: Fair Value: Liquidation Value:

Valuation during Liquidation (If any)

Insolvency Commencement Date

Professionals (RP/Liquidators) with dates

B. Synopsis (Brief facts about the case, including the reason for commencement of Liquidation Process)

C. Present status of the process:

  1. Reason for pendency and proposed line of action to complete the liquidation process
  2. Any important order from any authority other than AA affecting the process

D. List of events/action taken during liquidation process in chronological order:

  1. From LCD to previous progress report:
    Date Particulars

  2. During the current quarter: Date Particulars

E. Summary of Receipts and Payments during the quarter

(Amount in Rupees)
1.

to previous progress report:
Date Particulars

  1. During the current quarter: Date Particulars

E. Summary of Receipts and Payments during the quarter

(Amount in Rupees)

  1. Receipt and Payment Account Receipts
    Payments Opening Balance of Cash and Bank Balance at LCD / at the end of the previous quarter

Particulars
At the beginning of the quarter Received during the quarter At the end of the quarter
Particulars At the beginning of the quarter Paid during the quarter At the end of the quarter

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Sale of assets

Unpaid CIRP expenses

Assignment

Liquidation process expenses (excluding going concern expenses and Liquidator fee)

Recovery from receivables

Liquidator fee

Recovery from Statutory authorities

Misc Expenses

Going concern revenue

Going concern expenses

Contribution from FIs

Refund of contribution

EMD

Return of EMD

Misc receipts

Distribution to claimants

Total

Total

Closing cash and bank balance at the end of the quarter

Note: Additional heads may be added based on the nature of the case

  1. Non-Fund Based exposure of banks during CIRP and Liquidation Process of the Corporate Debtor: (Amount in Rs.) Exposure at the beginning of the quarter Exposure at the end of the quarter Reason for change

F.

re of banks during CIRP and Liquidation Process of the Corporate Debtor: (Amount in Rs.) Exposure at the beginning of the quarter Exposure at the end of the quarter Reason for change

F. Liquidation Cost: (Amount in Rupees)
S. No. Particulars

Estimated liquidation costs as on LCD

Actual liquidation cost as on the quarter end

Changes, if any, in estimated liquidation costs

Reason for actual cost exceeding the estimates or change in estimated costs, if any

G. Distribution made to stakeholders

              (Amount in Rupees) 

Stakeholders Claims admitted during the quarter Total Claim admitted
Amount distributed at the beginning of the quarter Amount distributed during the quarter Cumulative Amount distributed till at the end of the quarter
Insolvency resolution process costs

ount distributed at the beginning of the quarter Amount distributed during the quarter Cumulative Amount distributed till at the end of the quarter
Insolvency resolution process costs

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Liquidation cost excluding liquidator’s fees

Liquidator’s Fees

Total Secured creditors

Secured Financial creditors

Other Secured creditors

Unsecured Financial creditors

Workmen (for twenty-four months preceding LCD)

Workmen (for period beyond twenty-four months preceding LCD)

Employees (for twelve months preceding LCD)

Employees (for period beyond twelve months preceding LCD)

Statutory dues

Operational Creditors other than employees/ workmen / statutory authorities

Any other creditors

Preference shareholders

Equity shareholders or partners

Grand Total

Annexure: A. Constitution of Stakeholders’ Consultation Committee B. Stakeholders’ Consultation Committee meetings
C. Appointment/Cessation of Professionals
D. Details of security interest realized/to be realized by each secured creditor:
E. Details of assets put up for sale during current quarter (including assignment of not readily realizable assets)
F. Details of asset(s) not being put up for sale / assignment during the quarter
G. Details of PUFE application

H.

ding assignment of not readily realizable assets)
F. Details of asset(s) not being put up for sale / assignment during the quarter
G. Details of PUFE application

H. Details of cases pending before Courts/ Tribunals I. Receipts and Payments

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Annexure A. Constitution of Stakeholders’ Consultation Committee S. No. Name of the stakeholders/Representative Class of Stakeholders Amount Admitted Voting share (%) 1

Secured Financial Creditors

2

Unsecured Financial Creditors

3

Other operational creditors

4

Workmen/ Employees

5

Government

6

Shareholders

7

Others

Total

B. Stakeholders’ Consultation Committee meetings (Add for each meeting) Particular Details Date of meeting held during the quarter

Whether any decision taken different from the advice given by the SCC under Regulation 31A(9): (Yes / No)

In case of Yes, justification for such disagreement:

In case the gap between two consecutive meetings is more than 30 days, state the reasons:

C. Appointment/Cessation of Professionals
S. No. Date of appointment Date of cessation Name of Professional Scope of work Fees payable (Amount in Rupees) Remark (In case of deviation from Regulation 7 and 31A of liquidation regulation)

D. Details of security interest realized/to be realized by each secured creditor:
(Amount in Rupees) S. No.

idation regulation)

D. Details of security interest realized/to be realized by each secured creditor:
(Amount in Rupees) S. No. Name of Secured Creditor Admitted claim
Liquidation value of security interest
Amount of realization by secured creditor Contribution made as per reg. 21A(2)
If contribution not made as per reg. 21A(2), action taken

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by liquidator

E. Details of assets put up for sale during current quarter (including assignment of not readily realizable assets)

(Amount in Rupees) Sl. No.

Details of asset(s) in brief
E-auction / Private Sale / Assignme nt Number of failed auctions Date of sale / assignment Estimated Realizable Value in accordance with reg. 35

Reserve Price
Success ful bid value (if any)

Remar k ( In case of deviati on from Regula tion 33 and its schedul e-I of
liquida tion regulat ion)
1

Total

F. Details of asset(s) not being put up for sale / assignment during the quarter (Amount in Rupees) Sl. No.

Details of asset(s) in brief
Estimated Realizable Value in accordance with reg. 35
Reason(s)
1

Total

G. Details of PUFE application:

(Amount in Rupees) Date of filing of application
Filed by RP / Liquidator
Section(s) to which PUFE transaction pertains to (43/45/50/66)
Underlying Amount Present status

Total

(Amount in Rupees) Date of filing of application
Filed by RP / Liquidator
Section(s) to which PUFE transaction pertains to (43/45/50/66)
Underlying Amount Present status

Total

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H. Details of cases pending before Courts/ Tribunals

  1. Case initiated by CD Court Case Number Parties (Applicants and Respondents) Issue in Brief
    Amount involved Present Status

  2. Case initiated against CD Court Case Number Parties (Applicants and Respondents) Issue in Brief
    Amount involved Present Status

I. Receipts and Payments

(Amount in Rupees) Details of Receipts At the beginning of the quarter Received during the quarter At the end of the quarter
A. Balance at LCD

Cash

Bank Balance

FDR/Insurance /Mutual funds/Investment in listed shares, etc.

B. Contribution to liquidation cost from FIs

Contribution from financial institution

C. Realisation from assets

Auction sale

Private sale

Assignment of NRRA

D. Other realization

Receivables

Arbitration/ settlement proceeds

Avoidance applications

Refunds from Statutory authorities

Revenue from the business of CD as a going concern

Others

Total Receipts (A+B+C+D)

Details of Payments At the beginning of the quarter Paid during the quarter At the end of the quarter
A.

usiness of CD as a going concern

Others

Total Receipts (A+B+C+D)

Details of Payments At the beginning of the quarter Paid during the quarter At the end of the quarter
A. Unpaid CIRP Expenses paid during liquidation

Interim Finance, including interest

RP’s fee

Professional fee

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Cost of operating the business as a going concern during CIRP

Statutory dues

Others

B. Liquidation process cost

Liquidator fee

Support services fee

Marketing expenses

Litigation expenses (including fee paid to advocates)

Cost incurred for protecting and preserving the assets of the CD

Fee paid to other professional

Any other cost

C. Going concern cost paid

Cost incurred for running the business of the CD

Cost incurred for protecting and preserving the assets of the CD

D. Contributions repayment to CoC members

Payment to contributories, including interest, during liquidation

E. Distribution to claimants under Section 53(1)

Total Payments (A+B+C+D+E)

Balance at the end of the period (Total Receipts - Total payment)

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