‘Evaluation matrix is important tool for successful resolution plan’

 

 

 

THE Institute of Cost Accountants of India, Nagpur Chapter recently conducted a webinar on ‘Resolution Plan, Evaluation Matrix and role of CMA in IBC.’ On the occasion, CMA Anil B Verma, Chairman of Nagpur Chapter and CMA VVS Murty Secretary welcomed the speakers and participants. The first guest speaker CMA P V Bhattad, Past President of the Institute of Cost Accountants of India said that the resolution plan (RP) means that before going for Corporate Insolvency Resolution Process (CIRP) promoters are allowed to submit resolution plan for revival of company to avoid sale off or liquidation. He elaborated that the Insolvency and Bankruptcy Code (IBC) was finalised by the Ministry of Commerce in 2015.

 

When a company defaults on making payment to creditors, and after failing to avail the other remedy from its banker restructuring or other resolution plans, the Insolvency Resolution Process (IRP) is one under the Insolvency and Bankruptcy Code, 2016, where the National Company Law Tribunal (NCLT) initiates a Corporate Insolvency Resolution Process (CIRP). CMA Srigini Rajat Naidu, an Insolvency Professional, who is actively involved in the process with number of cases, was the second speaker said, “The evaluation matrix is barometer for testing a resolution plan. It is important tool for successful implementation of RP”. He explained that the evaluation matrix is a tool of inter comparison between various resolution plans received during CIRP but not meant for taking a decision on acceptance or rejection of the resolution plan.

 

The evaluation matrix would be useful in case resolution plans are received from more than one resolution applicant. “Parameters of evaluation matrix are quantitative parameter and qualitative parameter in nature,” he said. He further explained about the quantitative and qualitative parameters and their key aspects. “Evaluation matrix is a part of request for resolution plan (RFRP). It is dynamic in nature and a RP can decide the parameters based on the nature of business of the company under CIRP. The evaluation matrix needs approval of Committee of Creditors (CoC). “Evaluation matrix is a tool of RP to rank the resolution plan and provides a guideline for successful and acceptable resolution plan,” he further added. CMA Manisha Agarwal, an Insolvency Professional was the third speaker. She is actively involved in CIRP cases and gave the insight about the process of resolution plan. She explained the importance of timelines and the various deadlines to be met.

 

She explained how information memorandum is made and what should be contents and what documents are to be attached along with information memorandum. She further explained, what is resolution plan and resolution applicant. She explained the various amendments and discussed about Section 29A in length. She also explained the various stages of resolution plan under Regulations 36 to 39, invitation for expression of interest, request for resolution plan, contents of resolution plan, approval of resolution plan by CoC and submission of resolution plan before Adjudicating Authority. She correlated the work of resolution professional and resolution applicant with all the stages of resolution plan. CMA Renu Kulkarni, thanked the three speakers CMA P V Bhattad, CMA Srigini Rajat Naidu and CMA Manisha Agrawal for their presentations.