It aims to improve stakeholder representation, simplify compliance, and enhance transparency in the resolution process.

Amendments by Insolvency and Bankruptcy Board of India (IBBI)

• Revised forms for Corporate Insolvency Resolution Process (CIRP): Reducing compliance burden IPs; introduced a standardised monthly reporting cycle.
  • CIRP is a process of determining the repayment capability of the defaulter to decide the recovery mechanism for creditors. If found unable to repay the debt, the company is restructured or liquidated. 
    • CIRP can be initiated by: A financial creditor, an operational creditor, or the corporate itself.
• Flexibility in Resolution Plans: Allowed Resolution Professionals (RPs) to invite resolution plans not only for the company as a whole but also for the sale of one or more of its assets.
  • This will aid resolution of companies holding assets across diverse sectors and attract sector-specific buyers.
  • The Committee of Creditors may direct the RP to invite providers of interim finance to attend as observers, without voting rights.
• Guidelines for IPs: A common zone-wise Panel (valid from July 1 to December 31, 2025) to be created for appointment of IPs aimed at reducing delays in NCLT and DRT appointments.