The coming year will likely see significant changes to the insolvency resolution regime for better operational efficiency and output, in a break from the slowdown seen in the past year.
The insolvency and Bankruptcy Code (Amendment) Bill is expected to be tabled in Parliament early next year, to introduce group insolvency, and the laws needd to tackle cross-border cases, along with the creditor-led resolution process (CLRP). The Bill may also remove interim moratorium provisions for personal guarantors’ assets.
The CLRP would be similar to the pre-packaged scheme (for MSMEs), and will be initiated by the financial creditors, after the occurrence of default by the corporate debtor (CD), but with minimum interference of the…
