Amendment to the Insolvency and Bankruptcy Code (IBC)
The proposed amendment to the IBC aims to enhance the efficiency and governance of insolvency processes while aligning with international best practices. The amendment seeks to address various challenges faced by the current framework.
Key Objectives
- Reduce procedural delays and maximize stakeholder value.
- Introduce out-of-court mechanisms for handling genuine business failures.
- Implement group and cross-border insolvency frameworks.
- Foster a culture of accountability and credit discipline among debtors.
Challenges in the Current IBC Framework
- High case backlog and lengthy delays in case admissions and resolutions.
- Significant “haircuts,” or financial losses, for…