Corporate Insolvency and Liquidation Services

Why Insolvency and Liquidation Support Matters in India

Financial distress can disrupt operations, weaken stakeholder trust, and expose directors to legal and regulatory risks. When companies face sustained cash flow shortages, mounting debt, compliance lapses, or litigation pressure, the risk of insolvency increases significantly. Without timely intervention, these challenges can escalate into asset erosion, creditor disputes, and loss of business continuity.

The Insolvency and Bankruptcy Code (IBC) 2016 provides a structured and time-bound framework to address corporate distress. However, the process is complex, involving strict statutory timelines, detailed filings, multi stakeholder coordination, monitoring by Insolvency Professionals, and oversight from NCLT and IBBI. Proper guidance is essential because errors in documentation, valuation, claim management, or procedural steps can delay proceedings or trigger additional scrutiny.

Companies undergoing insolvency often struggle with creditor negotiations, claims reconciliation, compliance burdens, and preservation of assets during the moratorium period. Managing legal exposure, maintaining governance standards, keeping records updated, and ensuring transparent communication with stakeholders adds further pressure on already distressed businesses.

AccounTX helps companies navigate these challenges through a structured, compliance led approach. Our team combines insolvency expertise, regulatory knowledge, financial assessment capability, and end to end execution support to guide businesses through resolution or liquidation smoothly. We ensure each step aligns with the IBC framework, protects stakeholder interests, and supports responsible decision making during distress.

Understanding Corporate Insolvency and Liquidation in India

Corporate insolvency in India is governed primarily by the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code. The objective is to revive viable businesses, maximise asset value, and ensure transparent settlement for creditors. If revival is not feasible, the law provides a clear pathway for liquidation in a time bound manner.

Key Stages of the CIRP

  • Admission of the insolvency application by NCLT after reviewing evidence of default
  • A moratorium period that halts legal proceedings, recovery actions, and enforcement
  • Claim verification by the Insolvency Professional
  • Formation of the Committee of Creditors to evaluate revival options
  • Development and approval of a Resolution Plan
  • Transition to liquidation if no plan is approved

Difference Between Insolvency, Bankruptcy, Liquidation, and Winding Up

Insolvency refers to the inability to meet financial obligations. Bankruptcy is a legal status granted by a court. Liquidation involves selling company assets to settle dues when revival is not possible. Winding up is the legal closure of a company under the Companies Act or IBC.

Companies should consider initiating insolvency or restructuring when cash flows become unsustainable, liabilities exceed asset value, lender negotiations fail, or operational viability becomes uncertain. Early intervention improves preservation of asset value and negotiation outcomes.

Accurate documentation, independent valuation, inventory and asset verification, coordination with Insolvency Professionals, and transparent communication with creditors are essential. AccounTX supports businesses with compliance readiness, financial viability assessment, documentation, and stakeholder coordination.

Corporate Insolvency Resolution Services

Corporate insolvency requires a structured, law aligned approach that balances regulatory expectations with practical business realities. AccounTX provides end to end support during CIRP to meet statutory requirements, coordinate with stakeholders, and work toward viable outcomes that reduce legal exposure.

3.1 Advisory on Insolvency and Bankruptcy Code 2016

The Code applies to companies facing sustained financial distress, overdue debt, operational disputes, or viability concerns. AccounTX evaluates applicability, identifies early warning signs, and advises companies on the correct legal pathway.

CIRP Initiation Routes

  • Section 7 – Financial creditor applications
  • Section 9 – Operational creditor applications
  • Section 10 – Voluntary insolvency by the corporate debtor

Our advisory covers early stage financial review, operational risk assessment, documentation support, claim visibility, and compliance expectations for a smooth insolvency start.

3.2 Resolution Plan Preparation and Support

AccounTX prepares compliant Resolution Plans aligned with IBC requirements and commercial feasibility.

  • Detailed data analysis of financials, liabilities, inventory, and contracts
  • Viability and stress analysis
  • Financial modelling and forecasting
  • Drafting complete Resolution Plans with restructuring and revival strategies
  • Supporting negotiations with the Committee of Creditors and Resolution Professionals

3.3 Representation Before Regulatory Authorities

Insolvency involves frequent interaction with authorities. AccounTX provides structured support throughout filings and hearings.

  • Representation and assistance during NCLT hearings
  • Support for appeals and filings before NCLAT, IBBI, and DRT
  • Liaison with Insolvency Professionals and legal counsel

3.4 Coordination With Stakeholders

Effective stakeholder communication is essential during CIRP. AccounTX provides structured coordination and documentation support.

  • Communication with financial and operational creditors
  • Claim verification and reconciliation support
  • Coordination during CoC meetings and due diligence reviews
  • Ensuring documentation is accurate, timely, and IBC compliant

Liquidation and Winding Up Services

Liquidation is a structured legal process that requires strict adherence to timelines, documentation standards, and compliance under the Companies Act and the Insolvency and Bankruptcy Code. AccounTX helps companies navigate liquidation with clarity and regulatory alignment, ensuring that assets are realised fairly and stakeholders receive distribution as per the statutory waterfall.

4.1 Liquidation Under Companies Act and IBC

Liquidation becomes mandatory when a company does not obtain approval for a Resolution Plan within the prescribed CIRP timeline or when the Committee of Creditors recommends liquidation. In some cases, solvent companies may pursue voluntary liquidation.

AccounTX supports companies through both voluntary and compulsory liquidation, preparing petitions, affidavits, declarations, and related filings to ensure a smooth transition into the liquidation phase.

4.2 Asset Realisation, Valuation, and Distribution

Asset realisation must be performed with accuracy and transparency to protect stakeholder interests. AccounTX assists in creating asset inventories, supporting valuation activities, and verifying records as required under IBC norms.

  • Preparation of asset inventories and verification
  • Support for valuation as per IBC requirements
  • Assistance with auctions, private sales, and undertaking sales
  • Ensuring liquidation proceeds follow the statutory distribution waterfall

4.3 Support to Insolvency Professionals

Insolvency Professionals rely on accurate data and timely reporting for effective liquidation. AccounTX prepares compliant data rooms, documentation sets, and reporting structures.

  • Preparation of preliminary reports and asset memorandums
  • Creation of progress reports and stakeholder meeting minutes
  • Compliance submissions required by IBBI throughout liquidation

4.4 Entity Dissolution and Strike Off

At the end of liquidation, companies must obtain a dissolution order from NCLT or apply for ROC strike off in eligible cases. AccounTX manages the documentation, filings, statutory records, and post liquidation compliance required for orderly closure.

Debt Restructuring and Recovery Advisory

Restructuring debt requires a balanced approach that protects the business while meeting lender expectations. AccounTX designs restructuring plans, negotiates with lenders, and ensures regulatory compliance to stabilise operations and improve cash flow.

5.1 Corporate Debt Restructuring

AccounTX evaluates business viability and prepares restructuring plans with revised repayment schedules, interest reworking, and sustainability analysis.

  • Cash flow assessment and scenario modelling
  • Revised repayment and restructuring plans
  • Operational improvement strategies

5.2 One Time Settlements

AccounTX develops settlement strategies aligned with lender expectations, prepares documentation, and ensures compliance with RBI guidelines.

  • Negotiation strategies with lenders
  • OTS documentation and financial justification
  • Post settlement compliance and financial discipline planning

5.3 Support on SARFAESI and DRT Proceedings

Lenders may initiate actions under SARFAESI or approach the Debt Recovery Tribunal. AccounTX supports businesses with defence strategies, documentation, and coordination with legal advisors.

  • Response to SARFAESI notices and lender actions
  • Preparation for DRT filings and representation support
  • Reducing asset seizure risk and improving negotiation leverage

Legal, Compliance, and Regulatory Support

Insolvency and liquidation require extensive compliance across multiple authorities including NCLT, ROC, IBBI, and tax departments. AccounTX provides complete compliance and documentation support to avoid delays and penalties.

6.1 Statutory Filings and Documentation

AccounTX drafts, reviews, and files regulatory submissions throughout CIRP or liquidation.

  • NCLT filings such as petitions, affidavits, progress reports, and compliance reports
  • ROC filings including statutory registers and post resolution updates
  • IBBI submissions including CIRP forms, liquidation forms, stakeholder minutes, and reports

We create compliance calendars, documentation logs, and master registers to ensure accurate and timely filings

6.2 Cross Border Insolvency Assistance

Cross border insolvency requires alignment with domestic regulations and global frameworks such as the UNCITRAL Model Law. AccounTX assists companies with international coordination and regulatory compliance.

  • Recognition and documentation support for foreign creditors
  • Guidance for Indian entities with overseas operations entering insolvency
  • Coordination with international legal and financial advisors
  • Assistance for foreign parent companies with Indian subsidiaries under distress

6.3 Tax and Financial Compliance During Insolvency

AccounTX ensures accurate tax and financial compliance during CIRP or liquidation

  • Continuation of GST registration and filings
  • TDS compliance for payroll and vendor payments
  • Tax treatment of liquidation proceeds and asset sales
  • FEMA aligned management of cross border transactions
  • Certification and documentation required by banks, auditors, and Insolvency Professionals

AccounTX Insolvency Support Methodology

A structured methodology ensures transparency, predictability, and regulatory compliance. AccounTX follows a clear step by step framework.

Step 1: Diagnostic Review and Feasibility Assessment

We assess financial health, compliance status, operational viability, and creditor exposure to determine whether CIRP, restructuring, or liquidation is appropriate.

Step 2: Compliance and Documentation Setup

We prepare claims data, statutory registers, financial records, and regulatory filings to support Insolvency Professionals and lenders.

Step 3: Stakeholder and IP Coordination

AccounTX coordinates with creditors, banks, employees, and statutory authorities while supporting IPs with claim verification and meeting documentation.

Step 4: Resolution or Liquidation Execution

We assist with Resolution Plan preparation, valuation coordination, asset realisation support, and regulatory submissions.

Step 5: Monitoring, Reporting, and Regulatory Compliance

We track deadlines, prepare process reports, maintain compliance calendars, and ensure inspection readiness.

Step 6: Closure, Dissolution, or Post CIRP Support

AccounTX assists with dissolution orders, ROC strike off, post liquidation documentation, and implementation of approved Resolution Plans.

Industry Specific Insolvency and Liquidation Support

Different industries experience financial distress in unique ways. A sector specific approach ensures better valuation accuracy, risk control, compliance alignment, and stakeholder management. AccounTX provides customised insolvency and liquidation support tailored to each industry’s operational and regulatory realities.

Manufacturing and Industrial Businesses

Manufacturing companies face challenges linked to high fixed costs, supply chain dependencies, labour liabilities, and asset heavy operations. AccounTX ensures accurate verification of machinery, inventory, and factory assets along with industry specific compliance and stakeholder communication.

Real Estate and Construction

Developers often face project delays, RERA obligations, land title challenges, and complex funding structures. AccounTX manages project wise cash flow records, asset realisation strategies, and coordination with homebuyers, lenders, and statutory authorities.

Technology and Startups

Tech companies experience distress due to unsustainable burn rates, cash flow gaps, investor disputes, and IP dependent operations. AccounTX supports IP valuation, data room preparation, ESOP considerations, and investor communication.

Retail and eCommerce Businesses

Retail and eCommerce companies face inventory churn, warehouse liabilities, tight margins, and vendor payment challenges. AccounTX assists with inventory verification, contract reviews, asset recovery plans, and compliance management.

Exporters and Trading Companies

Export led businesses deal with currency fluctuations, delayed receivables, logistics disruptions, and cross border obligations. AccounTX helps with FEMA compliance, trade documentation, bank coordination, and international stakeholder communication.

NBFC Linked Businesses

Companies funded by NBFCs must manage loan covenants, hypothecation records, and high regulatory scrutiny. AccounTX handles ROC charge verification, lender negotiations, SARFAESI support, and liquidation filing requirements.

Family Run Enterprises

Family owned businesses often lack organised documentation and may have overlapping financial structures. AccounTX provides structured data cleanup, ownership clarity, and compliance support to ensure smoother insolvency or liquidation processes.

Case Scenarios and Examples

These anonymised scenarios reflect practical outcomes achieved through structured support by AccounTX, helping build trust and domain authority.

Case Scenario 1: CIRP Turnaround With Approved Resolution Plan

A mid sized manufacturing company facing heavy losses and lender pressure underwent CIRP. AccounTX supported financial review, claim reconciliation, and valuation coordination. A compliant Resolution Plan was approved by the Committee of Creditors leading to a successful business revival.

Case Scenario 2: Timely Completion of Voluntary Liquidation

An IT services company opted for voluntary liquidation due to group restructuring. AccounTX managed documentation, IBBI filings, liability verification, and asset distribution, allowing completion within statutory timelines.

Case Scenario 3: Debt Restructuring Achieved Through Lender Agreement

A trading company with seasonal cash flow stress risked NPA classification. AccounTX prepared restructuring proposals, conducted lender negotiations, and aligned compliance requirements, resulting in lender approval and successful business stabilisation.

Case Scenario 4: Early Advisory Preventing Litigation

A real estate group facing creditor notices and compliance gaps received early advisory from AccounTX. We recommended restructuring steps, regularised filings, and negotiated payment terms, preventing insolvency admission and reducing legal exposure.

Why Choose AccounTX

Selecting the right advisory partner is critical during insolvency or liquidation. AccounTX delivers structured, compliance driven support that provides clarity, protection, and confidence.

Expertise Across Insolvency, Liquidation, and Corporate Restructuring

AccounTX brings technical, financial, and legal expertise across CIRP, liquidation, restructuring, and early distress management.

End to End Support for Companies, Creditors, and Stakeholders

We offer advisory, documentation, valuation support, filings, negotiations, compliance tracking, and regulatory representation.

Strong Network of Insolvency Professionals and Legal Teams

AccounTX collaborates with experienced Insolvency Professionals, valuers, forensic auditors, and legal advisors to support complex cases.

Transparent Processes and Strict Regulatory Adherence

Our compliance first approach ensures documented workflows, timely filings, clear communication, and reduced procedural delays.

Experience Across Diverse Industries

We have experience supporting manufacturing, real estate, technology, trading, retail, NBFC linked, and family owned companies during financial distress.

Frequently Asked Questions

SEO friendly FAQs improve search visibility and offer helpful insights for users.

What is CIRP and when should a company apply

The Corporate Insolvency Resolution Process begins when a company cannot meet financial obligations. It may be initiated by creditors under Sections 7 or 9 or by the company itself under Section 10 of the IBC.

What happens after NCLT admission

Once admitted the company enters a moratorium, an Insolvency Professional takes control, creditor claims are verified, and the Committee of Creditors is formed to evaluate Resolution Plans.

How long does liquidation take

Under IBC liquidation is expected to be completed within 12 months but may take longer based on asset size, litigation, or complexity.

Difference between voluntary liquidation and strike off

Voluntary liquidation applies to solvent companies and requires NCLT and IBBI oversight. Strike off is a simplified ROC process for non operational entities without liabilities.

Do directors remain liable during insolvency

Directors powers are suspended after CIRP begins but they must support the Insolvency Professional with information. Liability may arise in cases of fraud or wrongful trading.

Can a company restart after liquidation

Once dissolved under IBC a company ceases to exist. Assets or undertakings may however be acquired by new owners through separate transactions.

Insolvency and liquidation require precision, compliance, and timely decisions. AccounTX provides structured support for corporate debtors, creditors, Insolvency Professionals, and stakeholders.

Request a consultation to understand the best pathway for CIRP, liquidation, debt restructuring, or regulatory compliance.