The framework seeks to enable faster, cost-effective resolution of stressed corporate debt through early creditor intervention while preserving management control under supervision. The process is designed to be time-bound and includes provisions for seamless conversion into the Corporate Insolvency Resolution Process (CIRP) where resolution is not achieved. The regulations outline eligibility criteria to be notified by the Central Government, define roles of financial creditors and applicants, and establish procedures for initiation, including creditor approval thresholds of 51% and notice requirements.
— The proposed regulations provide a detailed procedural structure covering initiation, conduct, and completion of the CIIRP. They mandate appointment of a resolution professional (RP), public announcement, reporting to the Adjudicating Authority, and constitution of a committee of creditors within defined timelines. The corporate debtor continues to manage operations subject to creditor oversight, with restrictions on key decisions without approval. The RP prepares an information memorandum and invites resolution plans through a structured process, including expression of interest and evaluation mechanisms. These also specify cost components, withdrawal procedures with safeguards, and provisions for replacement of the resolution professional. A model timeline targets completion within 150 days. These incorporates existing CIRP regulations with necessary modifications and provides for conversion to CIRP with 66% creditor approval.