The Insolvency and Bankruptcy Board of India (IBBI) has proposed a new framework aimed at enhancing the efficiency of the Corporate Insolvency Resolution Process (CIRP). This initiative addresses the challenges faced by interconnected corporate entities undergoing insolvency. The discussion paper released by IBBI marks various inefficiencies and conflicts that arise when multiple related entities are involved in CIRP simultaneously.
Corporate Insolvency Resolution Process (CIRP)
- The Corporate Insolvency Resolution Process is a legal process to resolve insolvency issues in corporate entities like private limited companies or public limited companies.
- A company is insolvent when it cannot pay its debts.
- There are two ways…
