Page 12 - Insolvency And Bankruptcy Code

Pre-pack resolution route needs incentives

Given that most MSMEs are informally organised, they may be averse to an insolvency resolution mechanism which displaces their founders

MCA is working to issue code of conduct for creditors under IBC: Verma

This comes a month after a Parliamentary panel flagged the "disproportionately large and unsustainable 'haircuts' taken by the financial creditors over the years"

'IBC is a road under construction,' says IBBI chairperson M S Sahoo

Referring to the pre-pack scheme of insolvency resolution for micro, small and medium enterprises (MSMEs), he says it takes three-six months for the market to understand a new framework

Siva tests IBC: NCLAT's choice between judicial wisdom & commercial wisdom

Siva Industries, a machinery part-maker, was admitted to the bankruptcy court on July 5, 2019

McLeod promoter to move NCLAT challenging NCLT order on insolvency

The appeal is listed for hearing on August 25

IBC reform helps insolvency professional assess avoidance transactions

Recent amendments by the Insolvency and Bankruptcy Board place the insolvency professional at the fulcrum of the resolution process.

CoCs need best practices code

'The delay in insolvency case resolution is another problem area where CoCs need to play a more proactive role', says the author

Bad loans: Prevention is better than cure

In managing the bad loan problem, IBC should be the last resort for banks

The unfairness of real estate bankruptcy resolution

'Real estate bankruptcy laws ought to be completely overhauled to right this egregious wrong', said the author

NCLT rejects Siva Industries' debt resolution under IBC, orders liquidation

Siva Industries was admitted to the bankruptcy court on July 5, 2019

Financial creditors realised 36% of their total claims under IBC: Govt

The government on Tuesday said that financial creditors have realised Rs 2.45 lakh crore or 36 per cent of their total claims under the insolvency resolution process till the end of June.

Plea for insolvency doesn't get time barred even if filed after 3 yrs: SC

SC ruled that plea by financial creditor won't get time barred even if filed beyond a period of three years from the date of declaration of the loan account as NPA.

Finance Panel for appointing HC judges as NCLT members to reduce litigation

Bank funds worth Rs 9.2 trillion struck in NCLT; committee wants benchmark on quantum of haircuts as in many cases, they are as high as 95%

Insolvency process: Parl panel suggests benchmark for 'quantum of haircut'

The Insolvency and Bankruptcy Code (IBC), which came into effect in 2016, provides for a market-linked and time-bound resolution of stressed assets.

Crackdown on erring insolvency professionals, IBBI sets hefty penalties

The Centre has proposed a crackdown on insolvency professionals that develop nexus with companies facing bankruptcy proceedings thereby delaying the resolution process

Lok Sabha passes bill to amend insolvency law without debate

Minister of State for Corporate Affairs Rao Inderjit Singh moved the Bill for consideration and passage amid the din

The other side of IBC

Any restructuring of stressed accounts outside the IBC would not look credible till the performance of PSBs improves

Decoded: What is prepackaged insolvency resolution & how does process work?

The prepackage process for resolution has been popular in Europe and the US over the past decade

Govt introduces a Bill in the Lok Sabha to amend insolvency law

The government on Monday introduced a bill in the Lok Sabha to amend the insolvency law and provide for a pre-packaged resolution process for stressed MSMEs. The proposed amendments would enable the government to notify the threshold of a default not exceeding Rs 1 crore for initiation of pre-packaged resolution process. The government has already prescribed the threshold of Rs 10 lakh for this purpose. The Insolvency and Bankruptcy Code (Amendment) Bill, 2021 -- which was introduced by Corporate and Finance Minister Nirmala Sitharaman -- will replace the ordinance that was promulgated on April 4 as part of efforts to provide relief for MSMEs adversely impacted by the pandemic. The bill, which was introduced in the Lower House amid Opposition din over various issues, seeks to have a new chapter in the Code to facilitate pre-packaged insolvency resolution process for corporate persons that are Micro, Small and Medium Enterprises (MSMEs). Generally, under a pre-packaged process, main

Govt considers automatic route for creditors in IBC to speed up resolution

Such a move requires strengthening of information utility system: Official