The Centre has used the Ordinance route to introduce pre-packaged insolvency resolution process (pre-pack) for companies classified as micro, small and medium enterprises (MSMEs).
India currently has about 6-7 lakh companies classified as MSMEs, and potentially these many could benefit from the newly introduced pre-packaged insolvency framework.
In the Indian framework context, a pre-packaged insolvency is an arrangement where the resolution of a companys business is negotiated with a buyer before an insolvency professionals appointment. It is a blend of informal and formal mechanisms, with the informal process stretching up to NCLT admission, followed by the existing NCLT supervised process for resolution as specified under the Insol…
Read the full article at: https://www.thehindubusinessline.com/companies/msme/now-in-india-a-pre-packaged-insolvency-process-for-msmes/article34242211.ece
