NOIDA: A FINANCIAL CREDITOR OR AN OPERATIONAL CREDITOR

Both operational creditors and financial creditors own certain advantages over each other. But Financial creditors are given some priorities over other creditors such as they are members of the creditor’s committee and have voting power etc and operational is not a member of the creditor’s committee.

Is IBC unfair to Operational Creditors?

Homebuyers are now considered financial creditors, whereas operational creditors, who are from the business world, may have a better understanding of the industry but still lack those rights.

An Operational Creditor with an Arbitral Award can proceed as a Decree Holder

The National Company Law Tribunal has paved the way for operational creditors to revive their debt and proceed as decree holder.

How Operational Creditors can revive their time-barred debt: An analysis of the Mekko Steel Case

There is a certainty that the time-barred debt can be revived even after the lapse of an initial period of limitation which is 3 years.

Significance of Submitting demand notice by operational creditor before filing application under Section 9 of IBC

As per section 8 of IBC an operational creditor, if does not receive amount from corporate debtor, has to deliver a demand notice of unpaid amount along with the copy of invoice demanding payment of the amount involved.

Operational Creditors still unable to gain from Insolvency Resolution

According to the terms of loan resolution in the Insolvency and Bankruptcy Code, the first preference on recovery is to secured financial creditors, followed by unsecured financial creditors, and then operational creditors.

Application for initiation of corporate insolvency resolution process by operational creditor (section 9)

In this article we have discussed about how an Operational creditor can file an application for initiation of Corporate Insolvency Process against it debtors.

Insolvency Resolution by Operational Creditor (Section 8)

An operational creditor as defined under s 5(20) of the Insolvency and Bankruptcy Code as a person to whom an operational debt is owed and includes any person to whom such debt has been legally assigned or transferred

Difference between Financial Creditor and Operational Creditor

The Insolvency and Bankruptcy Code (Amendment) bill 2017, describes the Financial Creditor and the Operational Creditor and the ambit of its applicability on creditor-debtor relationship.

Financial Creditor & Operational Creditor within the scope of Insolvency & Bankruptcy Code (Amendment) Bill, 2017

The IBC has introduced new and distinct concepts of ‘Financial Creditor’ and ‘Operational Creditor’ as opposed to the Companies Act, 2013 which merely introduced the term ‘creditor’, without any classification thereof.

Formation and composition of the committee of creditors under IBC, 2016

The Committee of Creditors (CoC) is the preeminent dynamic body in a Corporate Insolvency Resolution Process (CIRP). Choices with respect to the organization of the corporate borrower are taken at the gatherings of the Committee, in light of a dominant part vote of the individuals.

COMMITTEE OF CREDITORS (CoC) under IBC : FROM BEGINNING TO END

The Committee of Creditors (CoC) has complete wisdom and right to decide the fate of the company under CIRP. Lets understand all about Committee of Creditors under Insolvency Laws