Under this process, the creditors and the debtor will engage in negotiations to arrive at an agreeable repayment plan for composition of the debts and affairs of the debtor, supervised by a resolution professional.
The filing of an application will be followed by the imposing of an Interim Moratorium. A resolution professional will be appointed and confirmed; the RP will then submit a report to the Adjudicating Authority. The Adjudicating Authority will either reject or admit the report, following the admission of which a moratorium will be imposed and a public notice will be issued.
A Committee of Creditors will be formed after the service of a public notice and a meeting will be subsequently organized. The preparation of a Resolutions Plan will take place which will either lead to the approval or rejection of the same. If the application is approved then it will be carried out as per plan and in case it’s rejected the process will move towards Bankruptcy.