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Insolvency rules for corporate guarantors firms soon

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Insolvency rules for corporate guarantors firms soon
The insolvency rules for corporate guarantors and individual firms under the Insolvency and Bankruptcy Code (IBC) are likely to be notified by December.“It will come in a phased manner.At this point, we are trying to cover corporate guarantors.That is our main issue
In the first phase, we are dealing with corporate guarantors and individuals having businesses like proprietorship firms,” Ranjita Dubey, deputy general manager, Insolvency &Bankruptcy Board of India (IBBI), said. Dubey was speaking on the sidelines ofaround table on draft insolvency regulations on individuals and firms, organised by the IBBI in association with ICSI Insolvency Professional Agency and Merchants´ Chamber of Commerce &Industry (MCCI).
Mamta Binani, chairperson, standing committee on corporate law and governance, MCCI, said so far the rules were only in respect of the corporate insolvency resolution process and the rules concerning individuals and partnership firms were due to come.“The IBBI constituted a working group to recommend strategy and approach for implementation of the provisions of the IBC, 2016, dealing with insolvency and bankruptcy in respect of guarantors to corporate debtors, personal guarantors and individuals having businesses, and submit a report along with draft rules and regulations,” she said.IBBI had put up the draft rules online for public comments
The last date for submitting the comments was over, but the board was keeping the window open for further feedback
The Business Standard, New Delhi, 04th November 2017

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