Owners of micro, small and medium enterprises (MSMEs) going into bankruptcy proceedings under a simplified regime rolled out this week could lose their business in certain cases if they do not match a better offer from a potential investor.
The Insolvency and Bankruptcy Board of India (IBBI) is currently framing regulations under the new bankruptcy resolution framework for MSMEs introduced this week by way of an ordinance.
The proposed regulations will specify what will happen to the corporate turnaround plan offered by the existing management if not approved by the creditors and if some other investor is prepared to throw in his or her hat, said a person who has direct knowledge of the development. The regulations will specify how …
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