Ordinance Amends Insolvency & Bankruptcy Code

1. INTRODUCTION

The President of India promulgated the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 (the "Ordinance") on 6 June 2018 to amend the Insolvency and Bankruptcy Code, 2016 (the "Code"), which amongst other things, categorizes homebuyers as financial creditors, amends decision making thresholds and clarifies whether proceedings against guarantors fall within or outside of the moratorium during the corporate insolvency process.

The Ordinance has immediate effect and was introduced primarily to address some of the issues arising from the interpretation and implementation of the Code. We discuss some of the key amendments that the Ordinance introduces below.