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Alvarez & Marsal, a global leader in turnaround management and corporate restructuring, intends to widen service offerings in India to include ‘Resolution’ services.
The firm plans to offer ‘resolution’ professionals service once the new insolvency and Bankruptcy code gets enacted into law, said Nikhil Shah, Managing Director.
The new Insolvency and Bankruptcy code — which is awaiting Parliament nod — seeks to allow 'Resolution Professionals' to conduct the entire corporate insolvency resolution process.
Such professionals are to be empowered to manage the operations of the corporate debtor during the corporate insolvency resolution process period.
This proposed Code provides for management control to pass over to resolution professionals with significant powers, once an insolvency resolution is under way.
“We are seriously considering becoming resolution professional. This may happen once the bankruptcy code is enacted,” Shah told BusinessLine here. The proposed 'Insolvency and Bankruptcy Code' provides that corporate insolvency would have to be resolved within 180 days, extendable by 90 days. It also provides for fast-track resolution of corporate insolvency within 90 days.
No single lawCurrently, there is no single law dealing with insolvency and Bankruptcy in India. Liquidation of companies are handled by High Courts.
Sankar Krishnan, Managing Director, Alvarez & Marsal, said that this firm would also look to provide some ancillary services like claim resolution (unsecured creditors). Alvarez & Marsal India (A&M}, which has presence only in Mumbai, will by this year end set up an office in Delhi, Shah said.
“We are likely to start off with a small office in Delhi. We already have engagements here (in Delhi).We were missing a big opportunity", he said.
Krishnan said that A&M's journey has been good in India with professional base now at 100 persons compared to strength of nine persons three years back.
A&M has also expanded its service lines to include performance improvement, transaction advisory business, forensics and disputes practice.
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