Resolution Plan Development

A resolution plan is the proposal put forward by a prospective resolution applicant to revive a corporate debtor undergoing Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016, and its acceptance by the Committee of Creditors and approval by the tribunal marks the successful conclusion of the process. Developing a resolution plan that is commercially viable, compliant with the mandatory contents prescribed under the Code and IBBI regulations, and attractive enough to secure the requisite voting share of the Committee of Creditors requires careful financial structuring, legal drafting, and negotiation strategy. A weak or non-compliant plan risks rejection at the CoC stage or challenge before the tribunal, even where the underlying commercial proposal has merit.

Why This Matters

Resolution applicants invest significant time and resources in due diligence and plan preparation, and a plan that fails to meet statutory requirements, misjudges creditor expectations, or is weak on implementation feasibility can be rejected outright or delayed through litigation. Since the resolution plan also binds all stakeholders once approved, including those who did not vote in its favour, getting the structure, valuation, and legal drafting right the first time is essential to a successful and durable resolution.

How We Help

Commercial and Financial Structuring

We help resolution applicants structure the financial terms of their plan, including the treatment of different classes of creditors, upfront and deferred payment components, and any equity or business restructuring proposed as part of the revival strategy.

Financial Modelling and Viability Assessment

We build financial models to test the plan's viability against the corporate debtor's projected cash flows and operating capacity, helping ensure that commitments made in the plan are realistic and can be delivered upon implementation.

Statutory Compliance and Drafting

We ensure the plan addresses the mandatory contents prescribed under the Code and applicable regulations, including provisions for statutory dues, employee dues, and implementation and monitoring mechanisms, so that it withstands scrutiny by the Committee of Creditors and the tribunal.

Negotiation Support with the Committee of Creditors

We support resolution applicants through the negotiation process with the Committee of Creditors, helping refine plan terms in response to feedback while protecting the commercial interests underlying the applicant's proposal.

Who Needs This

• Strategic and financial investors preparing to bid for a corporate debtor
• Existing promoters seeking to regain control through a compliant resolution plan
• Consortiums of resolution applicants structuring a joint proposal
• Committee of Creditors seeking to evaluate the feasibility of competing plans

Our Approach

We work closely with resolution applicants from the due diligence stage through to plan submission, ensuring that commercial ambition is matched by financial realism and legal compliance. Our approach draws on current CoC expectations and tribunal practice to help applicants put forward plans that are both competitive in the process and genuinely deliverable once approved.

Get in Touch

To discuss how we can support you with resolution plan development, write to us at info@agarwalurs.com.