Updated: July 28, 2021 4:28:08 pm
The Insolvency and Bankruptcy Code (Amendment Bill), 2021 that was passed in Lok Sabha on Monday replaces the IBC Amendment Ordinance 2021 promulgated in April, which introduced pre-packs as an insolvency resolution mechanism for Micro, Small and Medium Enterprises (MSMEs). We examine the Pre-packaged Insolvency Resolution Process (PIRP), how it differs from the Corporate Insolvency Resolution Process (CIRP) and key hurdles that the new mechanism may face in gaining traction.
What are pre-packs?
A pre-pack entails the resolution of the debt of a distressed company through a direct agreement between secured creditors and the existing own…
Read the full article at: https://indianexpress.com/article/explained/explained-pre-packaged-insolvency-resolution-process-of-msmes-7426810/
