Rolta India Creditors To Vote On Resolution Professional Appointment

Rolta India Ltd.’s Interim Resolution Professional Mamta Binani said its committee of creditors will vote on the appointment of resolution professional and the cost related to the company’s corporate insolvency resolution process (CIRP).

The e-voting will begin from Monday (20 February) for the bankrupt software services provider’s committee of creditors, Binani said in a stock exchange announcement.

The outcome will be informed to the stock exchanges on its conclusion, she added, without providing the date.

The approval of CIRP cost, includes the cost toward the appointment of other professionals in the company’s insolvency resolution process, according to the statement.

The development came following the deliberations in the first meeting of creditors on 17 February.

Rolta, whose Chief Financial Officer Dinesh Kapadia recently resigned, is undergoing the CIRP after the Mumbai bench of the National Company Law Tribunal (NCLT) admitted a petition filed by its financial creditor Union Bank of India on 19 January, alleging a default of 1,413.47 crore rupees ($170.71 million). The NCLT had appointed Binani as the IRP of the company.

Rolta’s creditors, including financial and operational, have filed a total claim of 10,095.43 crore rupees against the company and out of the total amount, claims of 6,946.95 crore rupees have been admitted as on 9 February.

The claim amount of 3,121.12 crore rupees is under the verification process, while some claims have been rejected, according to the list of creditors submitted by Binani. The financial creditors include Bank of Baroda, Bank of India, Canara Bank and Union Bank of India.

How Much Insolvency Professionals Earn?

Insolvency professionals (IPs) play a critical part in the resolution of distressed corporate debtors, with the role demanding multi-disciplinary skills such as legal, managerial, and finance to perform their duties impeccably.

Becoming an IP – interim resolution professional (IRP), resolution professional (RP), liquidator, or bankruptcy trustee – can certainly be remunerative, but it depends on the specific case and the amount of work involved.

To settle the issues around the fees paid to an IP, the Insolvency & Bankruptcy Board of India in September 2022 amended regulations following a discussion paper and set some parameters to related to the remuneration paid to IPs.

The remuneration can vary depending on the case's complexity, the company's size, and other factors but generally, the larger and complex cases offer higher remuneration to IPs.

(Note: $1 = 82.7972 Indian rupees)

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