Insolvency & Bankruptcy Code, 2016 – Strategic Advisory
IBC (Insolvency & Bankruptcy Code) Advisory
Insolvency decisions are time-sensitive and role-specific. A company, creditor, promoter, investor or resolution applicant may face different rights, duties, information needs and risks. Lal Ghai & Associates helps clients organise the corporate and financial record, understand process dependencies and coordinate the required professional work for the matter.
Many businesses think of IBC only when a case reaches the NCLT. In reality, a lot of important IBC work happens much earlier.
A company may be under financial stress but still capable of being revived. A creditor may have a genuine claim but may need the right legal and documentation strategy before filing. A promoter may want to avoid unnecessary insolvency proceedings through settlement or restructuring. A potential buyer may want to acquire a stressed business but needs proper due diligence before making a resolution plan.
That is where professional IBC advisory becomes important.
We help clients look at the complete picture — debt position, creditor exposure, default status, documentation, commercial feasibility, legal risks, regulatory compliance, and possible resolution routes.
What is IBC Advisory?
IBC advisory is strategic guidance provided under the Insolvency and Bankruptcy Code, 2016 to promoters, creditors, and resolution applicants on financial stress resolution, resolution plan structuring, pre-pack insolvency eligibility, and distressed asset acquisition — distinct from the litigation and tribunal representation involved in filing or defending Corporate Insolvency Resolution Process (CIRP) applications before the NCLT.
While CIRP litigation begins once an insolvency application is admitted by the NCLT, IBC advisory typically begins earlier — when a company is showing signs of financial stress but has not yet defaulted, or when a creditor is deciding whether to pursue recovery through the IBC route versus other remedies, or when an investor is evaluating whether to acquire a stressed company through a resolution plan rather than a conventional acquisition.
This advisory layer matters because the outcomes available under the IBC are heavily influenced by timing and preparation. A company that engages in proactive stress resolution and creditor negotiation before a Section 9 petition is filed has materially more options — including restructuring outside the IBC, negotiated settlements, or eligibility for the Pre-Packaged Insolvency Resolution Process — than a company that waits until CIRP is already admitted and a moratorium is in effect.
Who Needs IBC Advisory?
IBC advisory is useful for anyone connected with a financially stressed company, unpaid debt, business restructuring, or distressed asset opportunity.
- Company promoters and directors seeing early signs of financial stress — delayed payments, covenant breaches, cash flow strain
- MSMEs exploring whether they qualify for the Pre-Packaged Insolvency Resolution Process
- Companies that have received a demand notice and need to decide on negotiation versus contest strategy before a formal petition is filed
- Financial and operational creditors deciding between IBC recovery and alternative remedies
- Members of a Committee of Creditors needing informed evaluation of competing resolution plans
- Investors and strategic acquirers evaluating distressed companies or assets as acquisition targets
- Resolution applicants structuring a resolution plan bid for a company in CIRP
- Solvent companies considering an orderly voluntary liquidation rather than continuing dormant operations
- Group companies assessing the IBC exposure and contagion risk from a stressed sister concern
- Family businesses navigating financial distress alongside succession or governance complications
Areas of IBC Advisory We Provide
Early-Stage Financial Stress Assessment
We assess the financial and legal position of the company, creditor exposure, pending defaults, contractual obligations, compliance gaps, and possible restructuring options.
IBC Strategy for Promoters
We help promoters prepare a practical strategy before and during insolvency proceedings. This may include reviewing notices, responding to creditor actions, preparing settlement options, understanding CIRP consequences, and evaluating resolution possibilities.
Advisory for Creditors Before Filing IBC Proceedings
We help creditors review the strength of their case before filing. Our focus is to ensure that the matter is properly prepared from the beginning.
Corporate Insolvency Resolution Process Advisory
We assist stakeholders during CIRP with claim filing, document review, creditor coordination, resolution plan evaluation, compliance support, and NCLT-related advisory.
Resolution Plan Structuring and Review
We help in reviewing and structuring resolution plans by looking at payment terms, creditor treatment, statutory dues, operational feasibility, compliance requirements, approvals, and post-acquisition obligations.
Liquidation Advisory
We advise stakeholders on liquidation-related documentation, creditor claims, asset sale process, stakeholder rights, distribution framework, and regulatory compliance.
Distressed Asset Acquisition Advisory
We help investors and businesses evaluate distressed assets before making a decision. This includes reviewing liabilities, pending disputes, regulatory issues, asset position, claims, business viability, and resolution plan conditions.
Our IBC Advisory Services
For Promoters & Companies
- Financial stress diagnostic and early warning assessment
- Creditor negotiation strategy and standstill agreement structuring
- Pre-pack insolvency (PPIRP) eligibility assessment and process guidance
- Restructuring-versus-insolvency decision advisory
- Director duty and liability advisory during financial distress
- Resolution plan preparation support for promoter-led resolution bids
- Voluntary liquidation strategy for solvent wind-downs
- One-time settlement (OTS) negotiation support with lenders
For Creditors & Resolution Applicants
- Committee of Creditors strategy and resolution plan evaluation
- Recovery route assessment — IBC versus civil/arbitration remedies
- Resolution plan structuring for prospective resolution applicants
- Distressed asset due diligence for acquisition evaluation
- Bid strategy advisory for resolution plan competitions
- Liquidation asset acquisition advisory
- Avoidance transaction and preferential transaction risk review
- Post-acquisition integration advisory for resolution applicants
Why Businesses Choose Lal Ghai & Associates for IBC Advisory
ICSI Peer Review Recognised Firm
Structured quality control over financial stress assessments, resolution plan reviews, and strategic recommendations
Practical Advice Before Legal Action
We first understand the business situation, financial pressure, creditor position, documentation, and commercial goal. This helps avoid unnecessary action and supports better decision-making.
Strong Understanding of Regulatory Compliance
IBC matters involve multiple legal and procedural requirements. Proper regulatory compliance is important at every stage, from claim filing and resolution planning to approval and implementation.
Integrated Practice
IBC advisory connects directly with our NCLT litigation, corporate restructuring, and mergers & amalgamations services for seamless escalation when formal proceedings become necessary
Business-Focused Approach
The goal is not always litigation. Sometimes the right answer is settlement. Sometimes it is restructuring. Sometimes it is CIRP. Sometimes it is acquisition. We help you choose the route that makes business sense.
Support for Multiple Stakeholders
We advise promoters, creditors, resolution applicants, investors, and businesses. This gives us a wider understanding of how different stakeholders think during insolvency and restructuring matters.
Frequently Asked Questions
IBC Advisory for Businesses Looking for Resolution, Not Panic
Insolvency is a serious matter, but panic rarely helps.
The right approach is to understand the position clearly, check the documents carefully, assess the legal risk, and then decide the next step. Many businesses still have options before liquidation becomes inevitable. Many creditors can improve recovery chances with the right preparation. Many investors can unlock value through properly structured resolution plans.
At Lal Ghai & Associates, our IBC advisory services are designed to help you make informed decisions at the right time. Speak With Our IBC Advisory Team.
Email: info@lgassociates.org | Offices in Ludhiana – Mohali – Gurgaon
Related Services at Lal Ghai & Associates
IBC advisory connects closely with related corporate and litigation services. LGA also handles: