The Indian Government enacted the Insolvency and Bankruptcy Code, 2016 (“IBC”) to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms, and individuals in a time-bound manner for maximisation of value of assets of such persons to promote entrepreneurship, availability of credit, and balance the interests of all the stakeholders.
Currently, the IBC provisions are applicable to companies and LLP and personal guarantors of such companies and LLP.
Why Are Corporate Recovery Services Needed in India?
In today’s volatile business environment, companies in India in some sectors may find it challenging to discharge their debts or recover their credits. Depending on the degree of financial distress, such companies’ corporate recovery could result in rehabilitation of the business, or liquidation of the business. Thus, corporate recovery is defined as the process of ensuring the owners, creditors, suppliers, and employees of financially distressed businesses to get the best possible deal.
Importantly, if the business is still viable, a turnaround is achievable with the help of expert restructuring strategists.
Else, if such a recovery is not feasible and the company is irredeemably insolvent, then the most optimal outcome is to liquidate the business, and keep the losses for all stakeholders to a minimum.
So if you are a creditor looking to protect your financial interests; a business owner looking to restructure your business, manage your crisis, or simply wind-up the business in an orderly manner; our team of corporate services experts can assist in maximising your financial outcomes by offering practical and cross-disciplinary solutions even in the most challenging of cases.
What Corporate Recovery Services in India Are Provided by InCorp?
Apart from the usual Insolvency and Liquidation Support services, InCorp, the regional leader in corporate services, provides the following corporate recovery services in India:
- Lender Services
- Corporate Restructuring
- Forensic Investigations
- Judicial Management
- Trustees/Nominees in Bankruptcy
FAQs
The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy.
Corporate recovery is the process of ensuring the owners, creditors, suppliers, and employees of financially distressed businesses get the best possible deal.
Some companies in India in some sectors may find it challenging to discharge their debts or recover their credits. As corporate recovery could result in rehabilitation of the business, or liquidation of the business, it is crucial that business appoint a qualified corporate recovery expert to manage the process.
- Insolvency
- Liquidation Support
- Lender Services
- Corporate Restructuring
- Forensic Investigations
- Judicial Management
- Trustees/Nominees in Bankruptcy
