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ARTICLE · 14 MAY 2020

Pre-Packaged Deals In IBC

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Since the start of the year 2019, the Government of India has been planning to introduce the concept of Pre-Package Insolvency Schemes in the Indian Insolvency & Bankruptcy Code.

IndiaInsolvency/Bankruptcy/Re-Structuring
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PRELUDE

Since the start of the year 2019, the Government of India has been planning to introduce the concept of Pre-Package Insolvency Schemes in the Indian Insolvency & Bankruptcy Code ("IBC"). Now due to COVID-19, the businesses all over the country have faced the worst hit since the global economic slowdown of 2008-2009 and it is imperative that the Government would chalk out a more concrete plan for the implementation of this system.

Pre-packaged schemes are already prevalent in the UK and the USA and the idea behind it is to approach the court with the already negotiated restructuring plan for the company. This is being implemented in India with the motive that with a timely resolution of stressed companies, their actual market value can be received without any depreciation or deterioration.

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