- Insolvency and Bankruptcy Board of India (IBBI) issued regulations to operationalise pre-packs.
- Insolvency regulator IBBI issued regulations to help operationalise the pre-packaged insolvency resolution process (PPIRP) for corporate debtors classified as micro, small and medium enterprises (MSMEs).
- The IBBI notified the Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021 (PPIRP Regulations) to enable the operationalisation of PPIRP.
- Nearly 5-6 lakh Indian companies classified as MSMEs can potentially benefit from the pre-packaged insolvency resolution process.
- The PPIRP Regulations detail the Forms that stakeholders are required to use, and the manner of carrying out various tasks by them as part of the PPIRP.
These provide details and manner relating to:
- Eligibility to act as resolution professional, and his terms of appointment;
- Eligibility of registered valuers and other professionals;
- Identification and selection of authorised representative;
- Public announcement and claims of stakeholders;
- Information memorandum;
- Meetings of the creditors and committee of creditors;
- Invitation for resolution plans;
- Competition between the base resolution plan and the best resolution plan;
- Evaluation and consideration of resolution plans;
- Vesting management of corporate debtor with resolution professional;
- Termination of PPIRP.
SOURCE: THE HINDU,THE ECONOMIC TIMES,MINT