The latest amendments to the IBC, 2016 allow the use of pre-packs to resolve insolvency proceedings involving micro, small and medium-scale enterprises. A pre-pack is a way of resolving the troubles of creditors and owners of a distressed business.
What are the amendments to the Insolvency and Bankruptcy Code passed by Parliament and will it ease the process for distressed MSMEs?
The story so far:
On July 28, the Lok Sabha passed the Insolvency and Bankruptcy Code (Amendment) Bill 2021, making into law amendments made to the IBC, 2016. The latest amendments allow the use of pre-packs to resolve insolvency proceedings involving micro, small and medium-scale enterprises. According to the amendments, the government has notified a threshol…
Read the full article at: https://www.thehindu.com/business/explained-will-pre-packaged-bankruptcy-terms-help-small-businesses/article35645131.ece
