The government is likely to amend the Insolvency and Bankruptcy Code (IBC) to introduce pre-packs as a resolution mechanism, according to a government official aware of the developments.
A pre-pack is an agreement for a distressed companys debt resolution between secured creditors and investors instead of a public bidding process, as under the Corporate Insolvency Resolution Process (CIRP) of the IBC.
The Corporate Affairs Ministry, last year, formed a committee led by MS Sahoo, chairperson of the Insolvency and Bankruptcy Board of India, to look into including pre-packs as a resolution mechanism under the IBC. Pre-packs may also offer an alternative for creditors to initiate insolvency proceedings as the government has suspended initia…
Read the full article at: https://indianexpress.com/article/business/banking-and-finance/eyeing-faster-resolution-govt-may-amend-ibc-to-bring-in-pre-packs-7140069/
