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Decoded: What is prepackaged insolvency resolution & how does process work?

The prepackage process for resolution has been popular in Europe and the US over the past decade

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To be eligible, a company must not be undergoing a corporate insolvency resolution process

4 min read Last Updated : Jul 28 2021 | 6:03 AM IST

The government on July 26 tabled the Insolvency and Bankruptcy Code (Amendment) Bill in the Lok Sabha introducing a new chapter on the prepackaged insolvency process that provides a resolution mechanism for stressed micro, small and medium enterprises (MSMEs). The IBC (Amendment) Bill change is in keeping with the ordinance promulgated on April 4, 2021. Here’s what this process entails and the need for it.

What is the prepackaged insolvency resolution?

Prepackaged resolution is a fast track process that identifies a resolution plan before the process is admitted by the National Company Law Tribunal. It is an arrangement where the promoter of

Topics : IBC Insolvency and Bankruptcy Code IBC amendments IBC resolution

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