IBBI Introduces New Standardised Liquidation Progress Reporting Format

The Insolvency and Bankruptcy Board of India (IBBI) has unveiled a new format for liquidation progress reports, seeking stakeholder inputs by July 12. This move aims to standardize reporting, benefiting insolvency professionals and adjudicating authorities by ensuring consistency, clarity, and uniformity in reports.

The Insolvency and Bankruptcy Board of India (IBBI) has introduced a new standardized format for the submission of progress reports during the liquidation process, in accordance with liquidations norms. The IBBI is soliciting stakeholder feedback by July 12.

This initiative promises a streamlined and consistent approach to reporting, which is expected to benefit both insolvency professionals and adjudicating authorities by ensuring clarity across all submissions.

'To streamline the process and ensure uniformity in the structure of these reports filed by the liquidators before the Adjudicating Authority, it would be beneficial for insolvency professionals (IPs) and the adjudicating authority if there were a standardized format,' stated the IBBI.

In February, IBBI mandated that these reports be shared with members of the stakeholders' consultation committee, subject to a confidentiality agreement.

The new guidelines require the progress report to include information on appointments, tenure, cessation of professionals, settlement lists of stakeholders, the status of unsold properties, distributions to stakeholders, and more.

Furthermore, the report should detail the fees due to and received by the liquidator, remuneration paid to appointed professionals, developments in material litigation involving the corporate debtor, and updates on applications for transaction avoidance.

In the June 21 circular, the IBBI invited public comments on these changes by July 12.

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