Steps in the NPA Resolution Process: Formulation and Implementation of Resolution Plans

NPA Resolution

We facilitate NPA Resolution by defending insolvency petitions, advising corporates on NPA recovery, NCLT Proceedings, and Insolvency Code. We also advise corporates on funding options for restructuring, and resolution plans.

The resolution process for Non-Performing Assets (NPAs) involves several steps aimed at recovering the value from these distressed assets.

Here's an overview of the key steps involved:

1-Identification and Classification: Identify loans that have defaulted on interest or principal payments for 90 days or more.
2-Formulation of Resolution Plan: The insolvency professional, along with the creditors, formulates a resolution plan. This plan outlines the strategies for restructuring the debt, selling assets, or other measures to recover the dues.
3-Approval of Resolution Plan: The resolution plan is presented to the Committee of Creditors (CoC) for approval. The CoC, which consists of all the financial creditors, must approve the plan by a majority vote.
4-Implementation of Resolution Plan: Once approved, the resolution plan is implemented. This may involve restructuring the debt, selling the company's assets, or other recovery measures.
5-Closure of Resolution Process: Upon successful implementation of the resolution plan, the NCLT closes the resolution process. The debtor's account is updated to reflect the resolution.