Pre-packaged Insolvency Resolution Process under Insolvency and Bankruptcy Code, 2016

“The draft report on pre-packaged insolvency is a step in the right direction but falls short of clear criteria on many vital concepts. For instance, the select committee has suggested that the trigger for the initiation of a pre-pack scheme should occur on subjective criteria such as ‘covid defaults’ or ‘pre-default stress’. While it is clear that a successful pre-pack insolvency scheme will need to attract debtors to resolve impending credit issues even before a default has occurred, terms such as above need definitional precision for any uptake by prospective users.”