A vital characteristic of the ordinance is the pre-packaged course of’ two-step balloting structure
Issues
Insolvency and Financial anxiousness Code | MSME | Indian corporations
Pre-packaged insolvency (or “pre-pack”) refers to the approach at some level of which a distressed company formulates a option concept with its creditors and a purchaser forward of the initiation of insolvency lawsuits. On April 4, 2021, Executive of India promulgated an ordinance introducing pre-packaged insolvency for Micro, Tiny, and Medium Enterprises (MSMEs).
The framework of the ordinance governs the pre-formal and the formal stages of pre-packs. The formal stage commences as soon as an application for pre-packaged insolvency has been filed. On the pre-formal stage, an MSME can …
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First Printed: Fri, April 16 2021. 22: 17 IST
