1.
A K MYLSAMY & ASSOCIATES LLP
Chennai • New Delhi • Coimbatore • Bangalore
Creating value by
Acquiring Stressed
Assets in India
through Insolvency Law
K.K. Balu
Attorney, Former Vice-Chairman
Company Law Board
5th June 2020 © 2020: A.K. Mylsamy & Associates LLP

2.
A K MYLSAMY & ASSOCIATES LLP
Chennai • New Delhi • Coimbatore • Bangalore
Stressed Co. can be acquired by you on a ‘Going Concern’
basis after a complete clean up
Full Change of
Ownership of Target
Co. to you
Full Change of
Management of Target
Co. to you
You can start your manufacturing operations immediately
Acquiring Stressed Companies in Resolution Stage
2

3.
A K MYLSAMY & ASSOCIATES LLP
Chennai • New Delhi • Coimbatore • Bangalore
1 Resolution Stage: Acquiring stressed companies
ST AGE ONE
2 ST AGE T WO
Liquidation Stage: Acquiring stressed Companies or
their Assets
Acquisition through merger,
Amalgamation or de-merger of
Target Company
If Companies in Resolution Stage are not acquired, NCLT Orders Liquidation

4.
A K MYLSAMY & ASSOCIATES LLP
Chennai • New Delhi • Coimbatore • Bangalore
Start of
Acquisition
Process
Submit Expression
Of InterestInvitation of
EOI
CoC’s Approval of
Resolution Plan
RP Submits Plan to
NCLT for approval
RP issues
RFRP & IM
Submit Resolution
plan
NCLT Approves
Resolution Plan
Acquisition is
completed
T*-0 75
23
90
105
150
135
165
Max. 330
Commencement** CoC
Constitution
Acquisition in Resolution Stage: Process and Timeline
*T = Timeline: No. of Days
**Commencement: Case is Admitted & IRP Appointed, Moratorium
4

5.
A K MYLSAMY & ASSOCIATES LLP
Chennai • New Delhi • Coimbatore • Bangalore
Stage No. Of Companies
In Resolution 2170*
In Liquidation 914
*Available as on March 31, 2020
Total No. of Companies Available for Takeover
5

6.
A K MYLSAMY & ASSOCIATES LLP
Chennai • New Delhi • Coimbatore • Bangalore
Resolution Plan-Takeover
document are approved by
NCLT-Court and is legally
Binding on all. You will be
protected.
01.
Licenses, permits,
concessions etc., of Target
Co. remains Intact.
02.
You can choose a merger,
amalgamation or demerger
by restructuring the Target.
03.
Takeover through IBC shields
and provides immunity to
you & Target Co.
04.
Takeover is time-bound:
Max. 255 Days from your
entry.
05.
Major Advantages to an Acquirer: Takeover
under Resolution Stage
6

7.
A K MYLSAMY & ASSOCIATES LLP
Chennai • New Delhi • Coimbatore • Bangalore
Full flexibility to you in
structuring Takeover-Subject
to IBC requirements.
06.
Very Large number of Target
Companies in all
Industries/Sectors across
India are available
for Takeover.
07.
Intellectual Property Rights
of Target Co. is preserved.
08.
IBC prevails over all other
laws in India if there is
inconsistency with other
Laws. Investors will stand to
gain.
09.
You can reap benefits of
bilateral agreements with
India and Japan.
10. 11.
Disputes in Resolution are
speedily resolved by NCLT,
NCLAT and Supreme Court
unlike general civil
litigations.
7

8.
A K MYLSAMY & ASSOCIATES LLP
Chennai • New Delhi • Coimbatore • Bangalore
Industry-wise availability of Target Companies
Industry In Resolution In Liquidation
Manufacturing 851 396
Food & Beverage 120 49
Chemicals & chemical products 85 34
Electrical machinery & apparatus 51 45
Fabricated metal products 46 24
Machinery & Equipment 94 36 8

9.
A K MYLSAMY & ASSOCIATES LLP
Chennai • New Delhi • Coimbatore • Bangalore
Industry In Resolution In Liquidation
Textiles, Leather & Apparel Products 136 88
Wood, Rubber, Plastic & Paper
Products
114 34
Basic Metals 147 64
Others 58 22
Real Estate, Renting & Business
Activities -
450 148
Industry-wise availability of Target Companies
9

10.
A K MYLSAMY & ASSOCIATES LLP
Chennai • New Delhi • Coimbatore • Bangalore
Industry In Resolution In Liquidation
Real Estate Activities 127 17
Computer & related activities 66 23
Research and Development 2 0
Other Business Activities 255 108
Construction 261 66
Wholesale & Retail Trade 210 117
Industry-wise availability of Target Companies
10

11.
A K MYLSAMY & ASSOCIATES LLP
Chennai • New Delhi • Coimbatore • Bangalore
Industry In Resolution In Liquidation
Hotels & Restaurants 46 18
Electricity & Others 87 18
Transport, Storage &
Communications
55 37
Others
210 114
Total 2170 914
Industry-wise availability of Target Companies
11

12.
A K MYLSAMY & ASSOCIATES LLP
Chennai • New Delhi • Coimbatore • Bangalore
Thank you
K.K. Balu
balu.kk@akmLLP.com

13.
A K MYLSAMY & ASSOCIATES LLP
Chennai • New Delhi • Coimbatore • Bangalore
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Contact Details
Chennai
Mowbrays Towers,
61, TTK Road,
Chennai 600 018
India
+91 99629 11111
Bengaluru
2283, 14th A Main Road,
HAL 2nd Stage, Indiranagar
Bengaluru 560008
India
+91 99161 54232
Coimbatore
965, Harita Centre, Avinashi
Road,
Coimbatore 641 037
India
+91-94440 55994
Suman@akmLLP.com