IBBI amends the Regulations governing representation of certain class of Creditors in CoC meetings

The Insolvency and Bankruptcy Board of India has amended the Regulations governing the representation of a certain class of Creditors in the CoC meetings. Creditors like allottees in a real estate project, etc. are allowed to vote through an authorized representative, who acts in accordance with their instructions.

As per the amendment, an interim resolution professional must go through the corporate debtor’s books of accounts to classify the creditors into different classes. Based on this classification, he must identify three insolvency professionals from the state or union territory which has the highest number of creditors belonging to a particular class. The creditors can then designate any one of the professionals as their authorised representative in the CoC meetings.

Press Relese No. IBBI-PR-2020-10 Dt. 7-8

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