IBBI upholds resolution professionals' independence under pre-pack schemes

In regulations issued on the Ordinance on pre-pack resolution, the IBBI said an insolvency professional can be appointed as resolution professional if they are independent of the corporate debtor.

The Insolvency and Bankruptcy Board of India (IBBI) has ensured independence of resolution professionals (RPs) under the pre-pack scheme for micro, small, and medium enterprises (MSMEs) notified recently.  

In regulations issued on the Ordinance on pre-pack resolution, the IBBI on Friday said an insolvency professional can be appointed as resolution professional if they are independent of the corporate debtor. This means the resolution professional and all partners and directors of the insolvency professional entity, of which they are a partner or director, have to be independent of the corporate debtor.

A person will be treated as independent of the corporate