Insolvency & Bankruptcy Practice

OVERVIEW

• Insolvency and bankruptcy practice is an area of law that focuses on helping individuals and businesses that are facing financial difficulties. Insolvency refers to a situation where an individual or company is unable to pay their debts as they become due, while bankruptcy is a legal process that provides a framework for managing and resolving insolvency.
• S&T Legal that specialize in Insolvency and Bankruptcy practice can advise clients on matters related to debt restructuring, bankruptcy proceedings, liquidation, and other issues related to financial distress. S&T Legal can also assist with negotiating debt repayment plans, representing clients in Tribunals and Courts, and providing guidance on compliance with Bankruptcy Laws and Regulations enacted as on today.
• In addition to providing legal services, insolvency and bankruptcy practice often involves working closely with financial advisors, accountants, and other professionals to develop comprehensive solutions that address the client's financial needs and objectives.
• Overall, insolvency and bankruptcy are a complex and specialized area of law that requires a deep understanding of financial systems, legal regulations, and industry-specific considerations. S&T Legal that specialize in this area of practice can provide clients with the guidance and support they need to navigate financial challenges and emerge with a sound financial footing.
• Restructuring: Debt restructuring is the process of renegotiating the terms of existing debt to make it more manageable for the Debtor. S&T Legal can advise clients on debt restructuring options and help negotiate new repayment terms with creditors.
• Bankruptcy Proceedings: Bankruptcy is a legal process that provides a framework for managing and resolving insolvency. S&T Legal can advise clients on the different types of bankruptcy proceedings available, help them navigate the legal requirements of the process, and represent them in court.
• Liquidation: Liquidation is the process of selling off assets to pay off creditors when a debtor is unable to repay their debts. S&T Legal can assist clients with liquidation proceedings and help them navigate the complex legal and financial issues involved.
• Compliance with Bankruptcy Laws and Regulations: S&T Legal can provide guidance to clients on compliance with bankruptcy laws and regulations. This includes ensuring that all required filings are made on time, advising clients on their rights and obligations under the law, and helping them avoid potential legal pitfalls.
• Section 7 of the Insolvency and Bankruptcy Code, 2016 deals with the initiation of the Corporate Insolvency Resolution Process (CIRP) by a Financial Creditor. This means that a Financial Creditor such as a bank or financial institution can approach the National Company Law Tribunal (NCLT) to initiate the insolvency resolution process against a Corporate Debtor if the debtor has defaulted on its debt obligations.
• Section 9 of the Insolvency and Bankruptcy Code, 2016 deals with the initiation of the corporate insolvency resolution process by an Operational Creditor. An Operational Creditor can approach the NCLT to initiate the insolvency resolution process against a Corporate Debtor if the debtor has defaulted on its debt obligations relating to the supply of goods or services.
• Section 10 of the IBC, 2016 deals with the initiation of the corporate insolvency resolution process by a Corporate Applicant. A Corporate Applicant is a corporate debtor itself who can approach the NCLT to initiate the insolvency resolution process against itself if it is unable to pay its debt obligations.
• Overall, Sections 7, 9, and 10 of the Insolvency and Bankruptcy Code, 2016 provide a legal framework for the initiation of the corporate insolvency resolution process by different types of creditors and the debtor itself. The Insolvency and Bankruptcy Code, 2016 has been a significant development in the area of insolvency and bankruptcy law in India, providing a streamlined and time-bound process for the resolution of corporate insolvency.
• Overall, insolvency and bankruptcy practice require a multidisciplinary approach that includes legal, financial, and strategic considerations. S&T Legal is a one stop service provider to have specialisation in this area of practice and can provide clients with the comprehensive support they need to overcome financial challenges and emerge stronger and more resilient.