Management and Guardianship of Corporate Debtor

“Control and Custody of Corporate Debtor” services typically refer to the actions and responsibilities taken by an insolvency professional or a designated authority when they assume control and custody of the assets, operations, and management of a corporate debtor during the insolvency process.

Here are some key aspects of these services:
1.Asset Management: Taking control and custody of the corporate debtor’s assets, including physical assets, financial accounts, intellectual property, contracts, and any other property or rights owned by the company.

2.Operations Oversight: Assuming responsibility for managing the day-to-day operations of the corporate debtor to ensure the continuation of essential business activities and prevent further deterioration of the company’s financial position.

3.Stakeholder Communication: Establish clear lines of communication with stakeholders, including creditors, shareholders, employees, and regulatory authorities, to provide updates on the status of the insolvency process and address their concerns.

4.Safeguarding and Preserving Assets: Implementing measures to safeguard and preserve the corporate debtor’s assets from loss, damage, or misuse during the insolvency proceedings. This may involve securing physical assets, maintaining insurance coverage, or taking legal actions to protect the debtor’s interests.

5.Financial Management: Managing the corporate debtor’s finances during the insolvency process, including collecting and managing receivables, addressing outstanding liabilities, and ensuring appropriate financial controls are in place.

6.Compliance and Regulatory Requirements: Ensuring compliance with applicable insolvency laws, regulations, and court orders throughout the control and custody period. This may involve reporting to regulatory authorities, preparing necessary documents, and seeking approvals as required.

7.Reporting and Documentation: Maintaining proper records, preparing periodic reports, and documenting all activities related to the control and custody of the corporate debtor. These records are essential for transparency, accountability, and legal compliance.

8.Governance and Decision Making: Making informed decisions in the best interest of the corporate debtor and its stakeholders. This may involve seeking approval from the appropriate authorities or judicial bodies for significant decisions such as entering into contracts, selling assets, or restructuring the company.

9.Transition and Handover: Facilitating a smooth transition of control and custody to the successful resolution applicant or the appropriate entity as determined by the insolvency process. This includes transferring assets, records, and management responsibilities to the new entity or owner.

It’s important to note that the specific actions and responsibilities associated with the control and custody of a corporate debtor can vary depending on the jurisdiction, applicable laws, and the nature of the insolvency proceedings.