Covid-19 defaulters can use MSME pre-packaged insolvency scheme

The detailed rules of the scheme specifying the minimum threshold of default will be notified soon

Micro, small, and medium enterprises (MSMEs) will be able to use the pre-packaged insolvency scheme for Covid-related default, which was exempt from the corporate insolvency resolution process, a senior government official said.
 
The pre-packaged scheme that has been introduced through an ordinance by the ministry of corporate affairs will also provide lessons to the government on increasing the scope of the provision to companies other than MSMEs. “The focus is now on MSMEs, which have a very unique character. Depending on this experience and how it is rolled out and availed by companies, we could think at a later