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IBBI Regulations on Bankruptcy Process for Personal Guarantors to Corporate Debtors Amended

The Insolvency and Bankruptcy Board of India (IBBI) has, on January 31, 2024, amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 and Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 vide notification No. IBBI/2023-24/GN/REG107 and No. IBBI/2023-24/GN/REG108 respectively.

 

The amendment removes the bar on the appointment of Resolution Professional (RP) or Bankruptcy Trustee (BT) in the insolvency resolution process or bankruptcy process of Personal Guarantors (PGs) to Corporate Debtors (CDs), who have acted or are acting as Interim Resolution Professional (IRP), Resolution Professional (RP) or liquidator during the Corporate Insolvency Resolution Process (CIRP).

 

The amendment further mandates the RP to place the repayment plan for their consideration and also inform them if the repayment plan is not received according to the timeline stipulated under Section 106 of the Insolvency Bankruptcy Code (IBC).