New Delhi: Imagine a group of companies—parent, subsidiaries, and affiliates—so tightly bound that if one fails, the rest stumble too. Until now, India’s insolvency law treated each of these firms like isolated islands. But that’s about to change.
In a major reform, the government is all set to introduce a group insolvency framework under the Insolvency and Bankruptcy Code (IBC), allowing financially distressed companies that are part of the same corporate family to be resolved together, rather than in silos.
After months of behind-the-scenes consultations and…