As against CIRP, which follows creditor in control model, the pre-pack process would work on debtor in possession model.
- By Harish Kumar and Itee Singhal
Ease of Doing Business for MSMEs: The pre-pack insolvency resolution process (pre-pack process), which has been in many discussions since the publication of the Insolvency Law Committees (committee) recommendations on the subject, was notified on April 4, 2021, through the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021. The minimum default threshold of Rs 10 lakh, which has been prescribed for initiating the process, would provide much respite to MSMEs by enabling them to have access to an effective resolution process under the pre-pack process. This would not have been …
Read the full article at: https://www.financialexpress.com/industry/sme/cafe-sme/pre-pack-insolvency-for-msmes-how-it-differs-from-corporate-insolvency-resolution-process-key-features/2244529/
