India’s insolvency ecosystem has long advocated for a Pre-packaged Insolvency Resolution Process (Prepacks) for all corporates. In her budget speech, the Finance Minister has, perhaps inadvertently, taken a partial step forward on the subject.More than 99% of the Indian companies have a turnover which is less than ₹500 crores. In this context, the recent reclassification of Micro, Small, and Medium Enterprises (MSMEs), through enhanced turnover and investment limits, now brings a large number of corporates under the ambit of prepacks. Under the current insolvency framework, MSMEs have the option to pursue prepacks.
At first glance, an investment limit of ₹125 crores may seem modest. However, it is important to note that this figure…
