Seeking to provide a quicker and value-maximising outcome for stressed MSMEs, the government has introduced a pre-packaged resolution process for such enterprises by amending the insolvency law.
Now, Micro, Small and Medium Enterprises (MSMEs) can seek resolution for their stress through the pre-packaged process under the Insolvency and Bankruptcy Code (IBC).
An ordinance was promulgated to amend the IBC on April 4.
Many MSMEs have been impacted by the coronavirus pandemic and experts opined that the latest amendment, which comes less than two weeks after the suspension of certain IBC provisions ended, is a welcome move.
The suspension — wherein fresh insolvency proceedings were not allowed for a year starting from March 25, 202…
Read the full article at: https://www.business-standard.com/article/companies/govt-amends-insolvency-law-introduces-pre-packaged-resolution-for-msmes-121040501137_1.html
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