Kolkata, May 7 -- The pre-packaged insolvency resolution process, introduced through the Insolvency and Bankruptcy Code (Amendment) Act of 2021, has witnessed a measured adoption rate thus far.
This mechanism, tailored for Micro, Small, and Medium Enterprises (MSMEs), offers a hybrid approach allowing corporate debtors and creditors to negotiate and formulate a base resolution plan before initiating formal proceedings.
Data from the Insolvency and Bankruptcy Board of India (IBBI) indicates that as of May 31, 2023, eight applications had been filed to initiate pre-packaged insolvency proceedings, of which six were admitted. One of the admitted cases was subsequently withdrawn before resolution, leaving four active cases, with one success...