Synopsis
The Code emphasizes on reorganization and insolvency resolution of the Corporate Debtor, while maximizing the value of assets of the CD and promoting entrepreneurship, availability of credit and balancing the interests of all stakeholders.
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When the Code was introduced it took time to settle before it was used cautiously by the creditors especially operational creditors.
The Government of India by way of an ordinance on April 4 2021 amended the Insolvency and Bankruptcy Code 2016 (Code) and has introduced the concept of Pre-Packaged Insolvency Process (PPIP) and the mode and manner to initiate the same.
At present the concept PPIP introduced will only be applicable in case of Micro, Small and Medium Enterprises (MSME). As stated in the objective of the ordinance, the PPIP for MSME have been introduced to provide them an efficient alternative insolvency resolution process so that value maximization, which is the main objective of the Code is achieved quicker and,
Pre-pack insolvency for MSMEs now a reality
April 05, 2021
Centre issues Ordinance; debt default threshold to be notified The Centre has taken the Ordinance route to introduce pre-packaged insolvency resolution process (pre-pack) for companies classified as micro, small and medium enterprises (MSMEs).
India has 6-7 lakh companies that are classified as MSMEs, which could potentially benefit from the newly-introduced pre-packaged insolvency framework.
A pre-packaged insolvency in the Indian framework context is an arrangement where the resolution of a company’s business is negotiated with a buyer before the appointment of an insolvency professional. It is a blend of informal and formal mechanisms, with the informal process stretching up to NCLT admission, followed by an existing NCLT supervised process for resolution, as specified under the Insolvency and Bankruptcy Code (IBC).
NHPC takes over Jal Power Corporation Ltd freepressjournal.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from freepressjournal.in Daily Mail and Mail on Sunday newspapers.
NHPC takes over Jal Power Corporation Ltd
NHPC takes over Jal Power Corporation Ltd
Excelsior Correspondent
JAMMU, Mar 31: NHPC, India’s premier hydropower company took over Jal Power Corporation Limited today after payment of resolution amount of Rs 165 crore into the lenders designated account.
The handing and taking over ceremony was carried out in the presence of RP Goyal, Director (Finance), NHPC, Biswajit Basu, Director (Projects) and other senior officers from NHPC, Secure Financial Creditors from PFC and PNB and Resolution Professional. RS Dhillon, CMD, PFC was also present on the occasion.
Jal Power Corporation Limited is developing a 120 MW Rangit Stage-IV Hydroelectric Project in the State of Sikkim. The company is currently undergoing Corporate Insolvency Resolution Process (CIRP) which was initiated on April 9, 2019 vide an order of NCLT. PFC and PNB are the financial Creditors. NHPC’S Resolution Plan was approved by Hon’ble NCLT vide order dated 24.12.2020 a