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Panel recommends changes to Insolvency and Bankruptcy Code through an ordinance: Report
The panel, led by Insolvency and Bankruptcy Board of India (IBBI) chairperson MS Sahoo, has invited public comments on the proposed amendments.
January 09, 2021 / 10:02 AM IST
A panel of experts has suggested changes to the Insolvency and Bankruptcy Code (IBC) through an ordinance, which would enable corporate turnaround plans to be negotiated outside tribunals.
The panel said it is the right time to allow pre-packaged resolution schemes, Mint reported. Such schemes are negotiated outside bankruptcy tribunals and later placed before a judiciary for approval.
The code may be amended quickly, preferably by an ordinance, to provide for the formal part of pre-pack. The code may make a skeletal provision enabling pre-pack, while the informal part could be left to market practice or guided by self-regulation, guidelines and best practices, the newspaper quoted the panel s ....

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