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Insolvency and Bankruptcy Code, 2016 was introduced by the government of India on 28th May, 2016 with an aim to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, and for matters connected therewith or incidental thereto.

With the number of insolvency proceedings against distressed entities on rise, and banks largely unwilling to lend to them, providing Interim Finance and Resolution Plan Finance is increasingly emerging as an important step in the insolvency resolution process.

Interim Funding

Interim finance means any financial debt raised by the resolution professional during the insolvency resolution process period and has been given super priority status, which means it needs to get paid back first before all other creditors.

Resolution Plan Finance

With a motive to turnaround the non-performing assets into performing assets by bringing in potential investors having required expertise, NBFCs are playing a vital role by financing the resolution plans of these applicants. Insolvency 

Resolution Process being a time bound mechanism requires every process to be completed in shorter span of time. Mostly banks are not able to process such loan applications on time and leaves another area for NBFCs to cater it.

One Time Settlement

For resolution of NPAs, banks regularly come out with various OTS schemes and also enters exclusively with the borrowers under OTS agreements wherein the borrowers are required to pay One Time Settlement against the total outstanding liabilities within an approved timeline.

Focusing on distressed entities, KFL possess an expertise in the areas of Interim Funding, Resolution Plan Finance and One-Time Settlement and is closely working with many Banks, Financial Institutions, ARCs and Resolution Professionals. KFL processes such applications in fastest time with a flexible repayment mechanism.