Due Diligence and Monitoring Services

Prospective resolution applicants need a clear, accurate picture of a distressed company's financial and operational position before committing to a resolution plan, while approved plans themselves require ongoing monitoring to confirm that the resolution applicant is meeting its implementation commitments. Both activities are central to the Insolvency and Bankruptcy Code, 2016 framework, since the Committee of Creditors, the tribunal, and the resolution professional all rely on accurate information at the diligence stage and on credible monitoring after approval to confirm that the resolution has actually delivered on its promise.

Why This Matters

Bidding for a distressed company without thorough due diligence exposes a resolution applicant to undisclosed liabilities, overstated assets, or operational issues that were not apparent from the information memorandum alone, potentially undermining the commercial basis for the plan. Equally, once a plan is approved, a lack of independent monitoring can allow implementation to drift from what was committed, creating disputes with the Committee of Creditors, the monitoring committee, or the tribunal over compliance with the approved plan's terms.

How We Help

Financial Due Diligence

We review the corporate debtor's financial statements, contingent liabilities, tax exposures, and working capital position to give resolution applicants a clear and independently verified financial picture ahead of bidding.

Operational Due Diligence

We assess the corporate debtor's operational health, including key contracts, supply chain dependencies, regulatory licences, and employee matters, to identify operational risks that could affect post-resolution performance.

Resolution Plan Implementation Monitoring

Once a resolution plan is approved, we support the monitoring committee or resolution applicant in tracking implementation milestones, payment schedules, and other commitments against the approved plan.

Periodic Reporting to Stakeholders

We prepare periodic monitoring reports for the Committee of Creditors, the monitoring committee, or the tribunal, documenting progress on implementation and flagging any deviations from the approved plan at an early stage.

Who Needs This

• Resolution applicants conducting due diligence before submitting a bid
• Committee of Creditors seeking independent verification of applicant proposals
• Monitoring committees overseeing post-approval plan implementation
• Lenders and investors tracking the performance of a revived corporate debtor

Our Approach

We tailor the depth and focus of due diligence to the specific risks relevant to each corporate debtor and each applicant's commercial objectives, rather than applying a generic checklist. Post-approval, we bring the same rigour to monitoring, giving stakeholders timely, objective visibility into whether a resolution plan is being implemented as approved, so that issues can be addressed before they escalate into disputes.

Get in Touch

To discuss how we can support you with due diligence and monitoring services, write to us at info@agarwalurs.com.