“Learn about Expression of Interest (EOI) under Insolvency & Bankruptcy Code, 2016. Explore Regulation 36A, detailing the issuance of EOI by resolution professionals for corporate debtors’ revival. Understand key details, eligibility criteria, documents required, and the publication process. Definitions and regulations provided under Section 5(26), Section 5(25), and Section 3(8) of IBC, 2016. Discover where EOIs are published and the prescribed form for publication. Get insights into the submission process, undertakings, and the resolution professional’s role. Stay informed for effective participation in the insolvency resolution process. #InsolvencyCode #EOI #BankruptcyResolution”
Regulation 36A of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 provides for the issuance of Expression of Interest (EOI) by a resolution professional. It is issued on behalf of the Committee of Creditors in the form of a public advertisement for submission of resolution plans for the purpose of revival of a corporate debtor and includes details such as:
1. Name of the entity
2. Registered Office
3. Incorporation date
4. Insolvency Commencement Date
5. Name of Resolution Professional
6. Format of EOI
7. Eligibility of Resolution Applicant
8. Documents to be submitted along with EOI
9. Undertakings by Resolution applicant
10. Date of publication of EOI
11. Last date for submission of EOI
Definitions
Section 5(26) of the IBC, 2016 – “Resolution plan” means a plan provided by the resolution applicant for the corporate debtor’s bankruptcy resolution as a going concern.
Section 5(25) of the IBC, 2016 – “Resolution Applicant” means a person, who individually or jointly with any other person, submits a resolution plan to the resolution professional pursuant to the EOI.
Section 3(8) of the IBC, 2016 – A corporate entity who owes debt to any person is referred to as “Corporate Debtor”.
Where is EOI published?
EOI is published in the form of an invitation from investors / bidders meeting the specified criteria in terms of financial and technical capabilities to submit resolution plans.
As per the Regulations, it is published in:
1. One English and one regional language newspaper with wide circulation at the location of the registered office of the entity and principal office of the corporate debtor and any other location where the corporate debtor conducts material business operations;
2. Website designated by the Insolvency and Bankruptcy Board of India (“IBBI”)
3. On the website, if any, of the corporate debtor;
4. Any other manner as may be decided by the Committee of Creditors (“COC”).
IBBI has prescribed Form G for publishing the EOI which has to be done within seventy-five days from the day NCLT admits the application of Corporate Insolvency Resolution Process.
What documents are needed along with EOI?
An EOI shall be unconditional and be accompanied by:
1. Undertaking by the prospective resolution applicant that it meets the criteria set up by the COC;
2. Relevant records in evidence of meeting such criteria;
3. Undertaking by the prospective resolution applicant that it does not suffer from any ineligibility under IBC, 2016;
4. Undertaking by the prospective resolution applicant that it shall intimate the resolution professional if it becomes ineligible;
5. Undertaking by the prospective resolution applicant that every information is true and correct and discovery of any false information or record at any time will render the applicant ineligible to submit resolution plan;
6. Undertaking by the prospective resolution applicant to the effect that it shall maintain confidentiality of the information.
Conclusion
The resolution professional shall issue a provisional list of eligible prospective resolution applicants within ten days of the last date for submission of EOI to the COC and to all prospective resolution applicants who submitted the EOI.
Any objection to inclusion or exclusion of a prospective resolution applicant in the provisional list may be made within five days from the date of issue of the provisional list.
On considering the objections received, the resolution professional shall issue the final list of prospective resolution applicants within ten days of the last date for receipt of objections to the COC.
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