Insolvency and Crypto Flashcards
the Ministry of Corporate Affairs (MCA) has published a draft framework for cross border insolvency proceedings based on the _____________ model under the Insolvency and Bankruptcy Code (IBC).
UNCITRAL (United Nations Commission on International Trade Law)
Broadly, the cross-border insolvency process pertains to those debtors having ______________– overseas.
assets and creditors
Bankruptcy:
It is a situation whereby a court of competent jurisdiction has declared a person or other entity insolvent, having passed appropriate orders to resolve it and protect the rights of the creditors. It is a legal declaration of one’s inability to pay off debts.
what is the primary legislation governig insolvency in india
IBC, 2016 - insolvency anf bankruptcy code
While foreign creditors can make claims against a domestic company, the IBC currently does not allow for ____ recognition of any insolvency proceedings in other countries.
automatic
current provisions under the IBC do not allow Indian courts to address the issue of foreign assets of a company being subjected to parallel insolvency proceedings in other jurisdictions. (this given unequal importance to other countries and the dues liable to them)
The IBC is implemented in the ___ courts
NCLT and NCLAT - Natl. Company Law Appellate Tribunal
In the case of __________, when one of the company’s aircraft was grounded in Amsterdam over non-payment of dues to a European cargo firm, the National Company Law Tribunal had declined to “take on record” any orders of a foreign court regarding domestic insolvency proceedings in the absence of enabling provision in the IBC.
The National Company Law Appellate Tribunal, however, permitted the recognition of Dutch proceedings as “non-main insolvency proceedings” recognising India as the Centre Of Main Interests (COMI) for the company.
Jet Airways
what are the two sectiond of the IBC which deal with cross-border insolvency
sect 234 and 235
debtor
is a company or individual who owes money
section 234 of IBC
empowers the Central Government to enter into bilateral agreements with other countries to resolve situations of cross-border insolvency.
section 235
the adjudictaing authority may issue a letter or request to the court of the country with which there is an agreement (under sec 234) to deal with assets situated in the country in a specific manner
The ________________– is the most widely accepted legal framework to deal with cross-border insolvency issues.
UNCITRAL model
It has been adopted by ___________- countries, including the UK, the US, South Africa, South Korea and Singapore.
49
It has been adopted by ___________- countries, including the UK, the US, South Africa, South Korea and Singapore.
49
It has been adopted by ___________- countries, including the UK, the US, South Africa, South Korea and Singapore.
49
The model law deals with ____________– major principles of cross-border insolvency
four
Direct access to foreign insolvency professionals and foreign creditors to participate in or commence domestic insolvency proceedings against a defaulting debtor.
Recognition of foreign proceedings & provision of remedies.
Cooperation between domestic and foreign courts & domestic and foreign insolvency practitioners.
Coordination between two or more concurrent insolvency proceedings in different countries. The main proceeding is determined by the concept of Centre of Main Interest (COMI).
how is COMI determined
The COMI for a company is determined based on where the company conducts its business on a regular basis and the location of its registered office.
what is PIRP
Pre-Pack Insolvency Resolution Process
A pre-pack is an agreement for the resolution of the debt of a distressed company through an agreement between secured creditors and investors instead of a public bidding process.
when was PIRP introduced in india
july 2021 b the IBC Amendment Act of 2021
what is the normal process of resolution under the code
Corporate Insolvency Resolution Process (CIRP)
Under the IBC, stakeholders are required to complete the CIRP within 330 days of the initiation of insolvency proceedings.
PIRP is available to
for Micro, Small and Medium Enterprises (MSMEs) with defaults up to Rs 1 crore
In March 2021 a sub-committee of the________ recommended a pre-pack framework within the basic structure of the Insolvency and Bankruptcy Code (IBC), 2016.
Insolvency Law Committee (ILC)
PIRP is faster than CIRP which is allowed a limit of 330 days, how long does PIRP take
a maximum of 120 days with only 90 days available to the stakeholders to bring the resolution plan to the NCLT.
Under the IBC, stakeholders are required to complete the CIRP within 330 days of the initiation of insolvency proceedings.
At the end of December 2020, over 86% of the 1717 ongoing insolvency resolution proceedings had crossed the ___________ threshold.
270-day
