Restructuring & Insolvency | Reviving Value in Distress
Financial distress is not the end; often, it is a new beginning. Since the introduction of the Insolvency and Bankruptcy Code (IBC), 2016, the landscape of debt in India has changed forever. It has shifted power from debtors to creditors.
At Satyarth Legal, our Restructuring & Insolvency practice sits at the cutting edge of this law. We advise on the complex dance between banks, operational creditors, and corporate debtors. Whether you are trying to recover your money or trying to save your company from liquidation, we provide the technical expertise to navigate the NCLT (National Company Law Tribunal).
Who Is This For?
Financial Creditors (Banks/NBFCs): Seeking to trigger insolvency to recover loans.
Operational Creditors (Vendors): Who haven’t been paid for goods/services.
Corporate Debtors: Companies facing liquidity crunches needing restructuring.
Resolution Applicants: Investors looking to buy distressed companies cheap.
Scope of Services
1. For Creditors (Recovery)
Demand Notices: Sending the statutory Section 8 notice (the warning shot).
Filing Insolvency Petitions: Initiating CIRP (Corporate Insolvency Resolution Process) under Section 7 or 9 of the IBC.
CoC Representation: Advising members of the Committee of Creditors (CoC) on voting for or against resolution plans.
2. For Debtors (Defense & Restructuring)
IBC Defense: Defending against frivolous insolvency petitions filed by aggressive vendors.
One Time Settlement (OTS): Negotiating with banks to settle dues outside court.
Section 10 Applications: Voluntarily filing for insolvency to gain a “Moratorium” (legal shield) and restructure the business.
3. Liquidation Advisory When revival fails, liquidation follows. We advise Liquidators on the sale of assets and distribution of proceeds in the “Waterfall Mechanism” priority.
Common Risks
The “1 Lakh to 1 Crore” Shift: The threshold to file for insolvency was raised to ₹1 Crore. Many vendors don’t know this and file invalid petitions. We filter these out.
Timelines: The IBC mandates a 330-day closure, but litigation often extends this. We push for expedited hearings to prevent asset value erosion.
Why Satyarth Legal?
We understand the “Commercial Wisdom” of the CoC. IBC is not just law; it is finance. We understand balance sheets as well as we understand case law. We help structure Resolution Plans that are legally compliant and financially attractive to the lenders, increasing the chances of approval.