Brief description of the FORMS to be filed during the Pre-Packs Insolvency Resolution Process – By Adv. Shivam Jaiswal

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Adv. Shivam Jaiswal

Brief description of the FORMS to be filed during the Pre-Packs Insolvency Resolution Process

– By Adv Shivam Jaiswal,
Legal at AAA Insolvency Professionals LLP

The central government has promulgated an ordinance under Article 123 of the Constitution of India, allowing the use of pre-packs as an insolvency resolution mechanism for Micro, Small, and Medium Enterprises (MSMEs) with defaults up to Rs 10 Lakhs, under the Insolvency and Bankruptcy Code.

In simple words, Pre-Packs Insolvency Resolution Process signifies as a compromise of the debt of a distressed company with the help of a consensus inked between the creditors and the investors wherein at least 66% of the creditors who are unrelated to the corporate debtor must uphold the resolution plan before proposing it to the NCLT.

Here is the brief description of the FORMS to be filed during the Pre-Packs Insolvency Resolution Process.

                            PRE-PACKAGED INSOLVENCY RESOLUTION PROCESS – FORMS 
FORMS Particulars Regulations Sections Description
FORM 1 Written Consent Regulation 7(1) Eligibility for IP for providing his written consent to act as RP/IRP

Eligibility for Resolution Professional.
An IP shall be eligible to be appointed as an IRP/RP, as the case may, if he, and all partners and directors of the Insolvency Professional Entity of which he is a partner or director, are independent of the CD.

FORM 2 List of Creditors of Corporate Debtor Regulation 14 List of creditors along with the amount due to them. As per Regulation 14 the applicant shall convene meeting of the FCs, who are not related parties of the CD. The notice of the said meeting shall indicate the date, time and venue of the meeting, and enclose a list of creditors along with the amount due to them in Form P2.
FORM 3 Approval of terms of appointment of Resolution Professional Regulation 14(5) Section 54A(2)(e)
The FC of the CD, , shall  propose the name of the IP to be appointed as RP for conducting the PPIRP  of the CD and appoint by vote share of 66 % 
The approval of the terms of appointment of RP under clause (e) of sub-section (2) of section 54A shall be in Form P3.
FORM 4 Approval for initiating prepackaged insolvency resolution process of corporate debtor Regulation 14(7) Section 54A(3)
The CD shall obtain an approval from its FCs, representing not less than sixty-six per cent. in value of the financial debt due to such creditors, for the filing of an application for initiating PPIRP
The approval for filing of application under sub-section (3) of section 54A shall be in Form P4.
FORM 5 Written consent to act as authorise representative Regulation 15(iii)  Choice of AR of Creditors   The RP shall ascertain class(es) of creditors and obtain the consent of the IP  to act as the authorised representative of creditors in the class in Form P5.
FORM 6 Declaration by directors or partners Regulation 16(1) Section 54A(2)(f)

The majority of the directors or partners of the CD, as the case may be, have made a declaration, in such form as may be specified, stating, inter alia, —

(i) that the CD shall file an application for initiating PPIRP within a definite time period not exceeding ninety days;
(ii) that the PPIRP is not being initiated to defraud any person; and
(iii) the name of the IP proposed and approved to be appointed as RP;

FORM 7 Declaration regarding existence of avoidance transaction Regulation 16(2) Section 54C(3)(c) a declaration regarding the existence of any transactions of the CD that may be within the scope of provisions in respect of avoidance of transactions under Chapter III or fraudulent or wrongful trading under Chapter VI, in such form as may be specified;
FORM 8 A report of the insolvency professional Regulation 17 Section 54B(1)
The IP proposed to be appointed as RP, shall prepare a report , confirming whether the CD meets the requirements of section 54A, and the base resolution plan conforms to the requirements referred to in clause (c) of subsection (4) of section 54A.
Report by resolution professional.
The report under clause (a) of sub-section (1) of section 54B shall be prepared in Form P8.
FORM 9 A public announcement Regulation 19(2) Public announcement Public announcement.
The resolution professional shall make a public announcement within two days of the commencement of the process.
FORM 10 List of claims Regulation 20 Section 54G (1)(a)
The CD within two days of the pre-packaged insolvency commencement date, submit to the RP  a list of claims, along with details of the respective creditors, their security interests and guarantees, if any;
List of claims
The CD shall submit a list of claims under sub-section (1) of section 54G in Form P10 to the resolution professional.
FORM 11 Invitation for resolution plans Regulation 43 Section 54K (5)
Where the COC does not approve the base resolution plan or the  said  plan impairs any claims owed by the CD to the OC, the RP shall invite PRAs to submit a resolution plan or plans, to compete with the base resolution plan.
Invitation for resolution plans.
The RP shall publish brief particulars of the invitation for resolution plans in Form P11 not later than twenty-one days from the pre-packaged insolvency commencement date.
FORM 12 Compliance certificate Regulation 49(1) Compliance certificate after the approval of plan by COC. Where a resolution plan is approved by the committee, the RP shall submit an application, along with a compliance certificate in Form P12, to the AA  for approval. 
FORM 13 Application for termination of prepackaged insolvency resolution process Regulation 49(4) In case of the Resolution Plan is not approved. Where no resolution plan is approved by the committee or where the committee has approved the termination of process, the RP shall file an application in Form P13 to the AA for termination of process.
FORM 14 Application for wasting management with a resolution professional Regulation 51 Section 54(J)
Vesting management of CD with RP.
Vesting of the management with RP.

 

 

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