Insolvency and Bankruptcy

JusIP assists clients with specialized advisory and representation services concerning stressed assets and entities facing potential business failures. We support tackling financial distress situations through debt structuring support or formal insolvency resolution. In the past, we have negotiated concessions buying critical time through instruments like one-time settlements, credit restructuring and fresh collateral infusion.

Where turnaround fails, we represent client interests across creditors committee negotiations leveraging our financial and resolution plans assessment expertise targeting optimal outcomes. We also advise clients on contingency strategies analyzing critical exposures and resource allocation required apart from litigation assistance in issues related to avoidable transactions.

Our services encompass:

Debt Reconstruction: We explore out-of-court restructuring solutions aligning interests of corporate borrowers and lenders towards debt repayment through fresh collateral infusion, timeline relaxations, one-time settlements etc.

Insolvency Proceedings: Where turnaround fails, we assist clients in initiating voluntary liquidation or insolvency resolution process through NCLT while representing creditors during resolution plan preparation, valuations and negotiations ensuring optimal recoveries.

Litigation Support: We represent clients in proceedings arising out of approved resolution plans concerning aspects like appeals, avoidance transactions identification and fraudulent transfers. Our team reviews NPA tag disputes and represents clients in SARFAESI matters before Debt Recovery Tribunals as well as High Courts and Supreme Court.

Advisory: We offer contingency planning support, liability scenario analysis and advise on aspects like enterprise value bridge, claim waterfall mechanisms and resource allocation during distressed situations.

What services does JusIP offer for businesses facing financial distress?

JusIP provides comprehensive support for businesses facing financial challenges, including:

Debt restructuring: We negotiate with creditors to restructure debt through solutions like one-time settlements, extended timelines, and additional collateral.
Insolvency resolution: If a turnaround is not possible, we represent both debtors and creditors during the insolvency resolution process through the NCLT (National Company Law Tribunal), ensuring optimal outcomes.
Litigation support: We represent clients in legal proceedings arising from insolvency resolutions and disputes related to fraudulent transactions and recovery of dues.

What are my options if my business is struggling financially?

You have several options, depending on the severity of the situation:

Debt restructuring: Explore options like negotiating with creditors for extended timelines, one-time settlements, or fresh collateral infusion.
Insolvency resolution: If restructuring fails, consider initiating voluntary liquidation or insolvency proceedings through the NCLT for a structured resolution and debt repayment.
Seeking legal advice: Consulting with a JusIP lawyer can help you analyze your situation, explore options, and develop a strategic approach tailored to your needs.

How can JusIP help me during the insolvency resolution process?

Our experienced lawyers can assist you by:

Representing your interests: We advocate for your rights as a creditor or debtor during negotiations and hearings in the NCLT.
Evaluating resolution plans: We assess proposed plans to ensure they are fair and maximize your potential recovery.
Litigation support: We can represent you in legal disputes arising from the resolution plan, such as challenges to its validity or fraudulent transactions.

What are some other ways JusIP can help my business?

Beyond insolvency, JusIP offers additional services to help businesses navigate financial challenges, including:

Contingency planning: We can help you develop strategies to anticipate and mitigate potential financial risks.
NPA tag disputes: We represent clients in disputes related to non-performing asset (NPA) classifications and work towards resolving them.
SARFAESI matters: We provide legal support in matters related to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.

How can I get started with JusIP's services?

Contact JusIP today for a consultation. We will discuss your specific situation and recommend the best course of action to navigate your financial challenges effectively.

Facing Financial Challenges? Insolvency and Bankruptcy Laws in India

The Insolvency and Bankruptcy Code (IBC) offers a framework for resolving financial distress and reviving businesses in India. Here's a simplified, 5-step breakdown of the process:

1. Initiation of Insolvency Proceedings:

Eligible applicants: The process can be initiated by creditors (financial or operational), the company itself (debtor), or regulatory authorities.
Filing application: A formal application is filed with the National Company Law Tribunal (NCLT) or National Company Law Appellate Tribunal (NCLAT) depending on the case specifics.
Adjudication by the Tribunal: The tribunal assesses the application and, upon admitting it, imposes a moratorium on legal proceedings against the debtor, providing a temporary break from creditor claims.

2. Appointment of an Insolvency Resolution Professional (IRP):

Selection by the Tribunal: The NCLT/NCLAT appoints an independent IRP to oversee the insolvency resolution process.
Responsibilities of the IRP: The IRP assesses the debtor’s financial situation, identifies potential buyers, and prepares a resolution plan aiming to revive the company and maximize value for stakeholders.

3. The Resolution Process:

Creditor engagement: The IRP convenes meetings with creditors to discuss the proposed resolution plan and negotiate a solution.
Resolution plan: The plan may involve restructuring debt, selling assets, or merging with another company, aiming to settle outstanding dues and ensure business continuity.
Voting by creditors: Creditors vote on the proposed resolution plan. Approval requires a majority vote by value (financial creditors) and number (operational creditors).

4. Outcome of the Process:

Resolution plan approved: If the plan is approved, the NCLT/NCLAT sanctions it, and the company is revived under the agreed-upon terms.
Resolution plan fails: If the plan is not approved, the NCLT/NCLAT initiates liquidation proceedings.

5. Liquidation (if applicable):

Appointment of a Liquidator: The Tribunal appoints a liquidator to sell the company’s assets in a transparent and orderly manner.
Distribution of proceeds: The proceeds from liquidation are used to settle outstanding dues in a specific order, prioritizing secured creditors, followed by unsecured creditors, and lastly, shareholders.

Remember: This is a simplified overview, and specific details can vary depending on the complexities of the case. Consulting with a qualified insolvency and bankruptcy lawyer is crucial to navigate the process effectively and protect your interests.

Free Consultation

Contact us today for a personalized consultation. We’ll discuss your needs in detail and recommend the most effective strategy to safeguard your interests and navigate the Insolvency and Bankruptcy process with confidence.

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