MSME: Centre promulgates IBC amendment ordinance to allow pre-packaged insolvency for MSMEs
Synopsis A pre-packaged resolution essentially translates to a company preparing a restructuring plan with its creditors before initiating insolvency proceedings. This helps to cut down the time and costs in the overall process. iStock In June 2020, the government promulgated an ordinance that suspended initiation of new insolvency proceedings for defaults. The Central Government has promulgated Insolvency and Bankruptcy Code (Amendment) Ordinance 2021 to allow pre-packaged insolvency process for MSMEs. The Ordinance, in essence, has amended the Insolvency and Bankruptcy Code 2016 and allow...
Source: indiatimes.com