IBBI prepares list of 787 insolvency professionals to expedite resolution process

economictimes.indiatimes.com:

bankruptcy regulator has firmed up a provisional list of 787 insolvency professionals (IPs) that it will share with the adjudicating authority to choose from to oversee various cases of resolution or liquidation.

The move is aimed at avoiding administrative delays in the appointment of IPs to expedite insolvency resolution and prevent further erosion of stressed asset value, said a senior official.

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Separately, the Insolvency and Bankruptcy Board of India (IBBI) has also picked up 31 Insolvency Professional Entities (IPEs)--usually comprising a group of such professionals--that have also registered themselves as IPs to oversee resolution. The lists are provisional and will be updated periodically.

IPs are the backbone of any insolvency ecosystem, as they take on the important roles of resolution professionals or liquidators or bankruptcy trustees.

The latest list comes on top of a similar “common panel” of about 400 IPs and 17 IPEs prepared by the regulator in June in a first of its kind move.

Prior to this move, the regulator was required to recommend the IP’s name only after receiving reference from the National Company Law Tribunal (NCLT) in a corporate insolvency resolution process (CIRP), which was contributing to the delay in resolution and resultant erosion of stressed asset value.

The selected IPs were eligible for appointment between July 1 and December 31 this year. The IBBI had, earlier this year, asked