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The government on July 26 tabled the Insolvency and Bankruptcy Code (Amendment) Bill in the Lok Sabha introducing a new chapter on the prepackaged insolvency process that provides a resolution mechanism for stressed micro, small and medium enterprises (MSMEs). The IBC (Amendment) Bill change is in keeping with the ordinance promulgated on April 4, 2021. Here’s what this process entails and the need for it.
What is the prepackaged insolvency resolution?
Prepackaged resolution is a fast track process that identifies a resolution plan before the process is admitted by the National Company Law Tribunal. It is an arrangement where the promoter of
