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Confidential and Proprietary
IBC Ordinance dated 6th June 2018
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Key amendments notified by the ordinance
• Definition of ‘related party’ of an individual now widened to include
– Relative of individual or relative of the spouse of individual
– Any company/person who acts or accustomed to act on advice of the individual
• MSME promoters can bid, MSME as defined in MSME Development
Act, 2006; it doesn’t refer to 250 Cr revenue criteria
• Financial creditors: now any person on behalf of financial creditor
can also file the application
• Operational creditors: norms to admit the application by operational
creditors in by relaxing some certificates required from them
• Real estate projects: buyers of real estate project to be considered
as financial creditors (no clarity about secured or unsecured)
• In case of corporate applicant, special resolution passed by the
shareholders or votes of at least 3/4th of total partners required
• Relaxation in NPA related 29 (A) criteria for financial bidders if default
was before submission of resolution plan

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Key amendments related to rquired voting share of CoC
• Required voting share of CoC changed to 66% from earlier rule of 75%
for following decisions:
– Approval resolution plan and decision of liquidation
– Extension of CIRP period from 180 days to 270 days
– appointment of IRP as RP, replacement of RP
– Routine decisions as mentioned under section 28(1)
• The Concept of moratorium shall not apply to contracts of guarantee
provided to a corporate debtor
• Section 21(8) decisions need only 51% as opposed to 75%; this section
includes some routine decisions
• Withdrawal of application filed for CIRP with 90 % votes of CoC –
doesn’t clarify at which stage of the process withdrawal allowed
• The IRP/RP shall now be responsible for complying with the
requirements under any law for the time being in force on corporate
debtor
• RP can proxy vote for large pool of financial creditors if he has
obtained prior instructions to do from each of those fin creditors

4.
Confidential and Proprietary
Thank You!
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