Recently, the Insolvency and Bankruptcy Board of India (IBBI) has amended the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 to prescribe a fee structure for determining the fee payable to the interim resolution professional and the resolution professional. It has also provided for a performance-linked incentive fee to these insolvency professionals for timely resolution of insolvencies and to promote value maximization for the corporate debtor. In this update, we discuss the key changes introduced by the amendment and our thoughts on the same.
IBBI prescribes fee structure for insolvency professionals