The advent of the new Insolvency and Bankruptcy Code, 2016 has wide opened new horizons for career prospects in the Insolvency sector. The process of Insolvency and Bankruptcy warrants for the synergic efforts of professionals like lawyers, Company Secretaries, Charted Accountants etc. These professionals act as a doctor to the sick condition of the suffering corporation. This treatment may be in the form of restructuring of a company. Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable or better organized for its present needs. The insolvency practitioners help individuals, companies, Limited Liability Partnerships (LLPs) etc. The fate of the creditor and debtor lies in the expertise of insolvency practitioners.
Skills required for an Insolvency Practitioner
An Insolvency practitioner is a professional whose primary focus is to assist his/ her clients through the proceedings in order to reduce or eliminate debt or to proceed forward with bankruptcy. These professionals can work for both individuals and corporations. Insolvency lawyers have the liberty of representing individuals or corporate debtors, individual or corporate creditors, bankruptcy trustees, and creditors’ committees. Their job entails both inside and outside courtroom procedures. Outside the courtroom, insolvency practitioner advises their clients in the complexities of bankruptcy laws and counsel them in reducing their debt load by liquidating assets and paying creditors. Apart from that, they may also work on the side of creditors, attempting to extract as much money owed as possible from their debtors. Insolvency work is as much about people as it is about figures. Insolvency practitioners need the skills to deal with creditors, anxious directors, concerned employees and a range of other stakeholders in the business.
The course adds practical knowledge to your existing professional expertise. An insolvency practitioner requires the following skills which are specifically nurtured during the duration of this course-
Litigation and Transaction Skills
Attention to Details
Strong Written and Verbal Communication Skills
Updated with the Latest News
Creative Problem Solving
Skilled in Analysis
Good Negotiation Skills
Good at Mathematics
Further, the practitioners require the specific skills to perform functions like-
Assisting IP in preparing for pre-CIRP preparation.
Reviewing the various risks involved in restructuring.
Developing risk mitigation strategies.
Working out a detailed bankable financial structure of the business.
Working out a detailed plan for restructuring the business from all angles.
Assessment of distressed assets, cash position, due diligence and turnaround feasibility.
Importance of Insolvency and Bankruptcy laws
There is a broad range of opportunities that arise from corporate insolvency and financial restructuring. Normally, insolvency practitioners would find a strong resonance with these requirements due to their deep understanding of the financial aspects of an enterprise’s operations and their implications. The target companies not only have to undergo deep and incisive due diligence by teams from the prospective acquirers, but also the transaction structures must be devised and validated by lawyers, accountants and examined from the regulatory aspects.
Benefits of this course
The course adds to the existing qualification and highlights the individual distinctly as an expert in the field. The additional knowledge of insolvency and bankruptcy laws boosts the career prospects of a professional. The diverse nature and requirement of these laws in law firms, accounting firms and other corporations enhance its importance as a distinct skill. It provides a professional with a chance to explore their career choices in a diverse range of undertakings. It provides a threshold push to work as an independent practitioner by using the practical skills delivered through this course.
A professional with the knowledge of Insolvency and Bankruptcy laws can be an asset to the following entities-
Individual companies or organisations
Government sector undertakings
Public welfare organisations
Corporate sector firms
Prospects of being an Insolvency Professional
The position of the Insolvency Professional (IP) is most significant in the insolvency proceedings as evident from the fact that one of the unique features of this Code is the vesting of entire management and operations of the company undergoing the CIRP with an IP. These professionals are duly enrolled by Insolvency Professional Agencies (IPAs) and registered for licensing with the regulatory body, i.e., the Insolvency and Bankruptcy Board of India (IBBI). The code specifies the functions and obligations of the Insolvency Professionals. A CA, CS, Accountant or an Advocate can become an Insolvency Professional if he has passed Limited Insolvency Examination.
The placement cell will assist you in recruitment.