Creditors will now need to file info about defaults as IBBI amends rules

The Insolvency Bankruptcy Board of India (IBBI) on Wednesday amended insolvency regulations, which now require creditors to file information regarding the assets and liabilities of their corporate debtors, along with other relevant financial information while initiating a corporate insolvency process.

The amendment also provides for filing copy of GST returns by operational creditors, along with e-way bills as documentary evidence of the debt and default.

The same information may also be submitted as part of the claim documents submitted to the Insolvency Resolution Professional or the interim resolution professional for easier verification of claims.

The changes in regulation also addresses the issue of treatment of avoidance applications filed with the Adjudicating Authority after closure of the corporate insolvency resolution process (CIRP).

The amendment includes a definition of significant difference in valuations during CIRP and enables the committee of creditors to make a request to the resolution professional regarding the appointment of a third valuer.