Go First has been going through the insolvency resolution process since May 10 last year. The airline's process is being overseen by resolution professional Shailendra Ajmera, who had so far successfully managed to avoid deregistration of the leased aircraft.

Insolvency examples An individual may enter into insolvency when they own an expensive car and large house and run into financial distress. An expensive divorce, job demotion or redundancy, unexpected illness or injury may drastically alter the person's financial situation.

This process is called compulsory liquidation, and generally begins with the issue of a statutory demand against the debtor company, closely followed by a winding-up petition. Company directors may also decide that voluntary liquidation is the best option if they fear such legal action by creditors is imminent.

CIRP is the process through which it is determined whether the person who has defaulted is capable of repayment or not (IRPs will evaluate the assets and liabilities to determine the repayment capability). If a person is not capable of repaying the debt the company is restructured or liquidated.

The Corporate Insolvency Resolution Process ('CIRP') is a recovery mechanism for the creditors of a corporate debtor. A corporate debtor means a company or Limited Liability Partnership ('LLP') that owes a debt to its creditors.

CIRP is fundamentally concluded in six stages, keeping variable factors constant. The stages are as follows: Stage 1 - Petition to the NCLT: When a company defaults in furnishing payments to its creditors, as discussed above, the creditors hold a right to bring forward a CIRP petition before the Adjudicating Authority.

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The Insolvency and Bankruptcy Code provides for conducting a corporate debtor's corporate insolvency resolution process. CIRP aims to resolve issues with defaulting companies quickly and keep them operating.This guide will help you understand the resolution process. The CIRP framework provides a clear path for reviving failing companies and striking a balance between creditor interests and business rescue. CIRP is the process through which it is determined whether the person who has defaulted is capable of repayment or not. CIRP is the process of resolving the corporate insolvency of a corporate debtor in accordance with the provisions of the Code. The insolvency resolution is ultimately in the hands of the majority vote of the CoC. Otherwise, the company may go into liquidation. What Could be the Outcome of Initiating an IRP? The code further mandates that an insolvent company cannot undertake the liquidation process without going through CIRP.

Corporate Insolvency Resolution Process With Example In King

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