Prepack insolvency resolution: Swiss Challenge options, IBC tweaks on cards

The prepack is to start with a base resolution plan (BRP), which will face a Swiss Challenge; and this should come from the promoters if they are eligible and interested

Topics
M S Sahoo | Insolvency and Bankruptcy Code | Indian companies

Raghu Mohan  |  Mumbai 

The M S Sahoo committee has suggested two options on prepacks — with and without a ‘Swiss Challenge’ — and a quick amendment to the Insolvency and Bankruptcy Code (IBC), preferably by an Ordinance.

It is, however, categorical that there shall be no dilution of the provisions of Section 29A of the IBC. In cases with a Swiss Challenge, the rights of operational creditors (OCs) and dissenting financial creditors (FCs) are to be protected subject to the minimum comfort provided under Section 30(2)(b) of the IBC; and in instances without it, there is to be no ...

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, January 06 2021. 06:10 IST
RECOMMENDED FOR YOU
.