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ARTICLE · 05 MAY 2021

Pre-Packaged Insolvency Resolution Procedure

King, Stubb & Kasiva
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Pre-pack is a type of restructuring in which creditors and debtors collaborate on an informal agreement before submitting it for approval.

IndiaInsolvency/Bankruptcy/Re-Structuring
Abhishek Bagga
Abhishek Bagga
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Pre-pack is a type of restructuring in which creditors and debtors collaborate on an informal agreement before submitting it for approval. Micro, Small and Medium enterprises companies are typically run by promoters, making it impossible to resurrect them if the administration is removed under the standard Corporate Insolvency Resolution Process ("CIRP"). The latest ordinance encourages current promoters to participate, with the board maintaining power and the debtor presenting the base resolution package, which will then be put to the bidding process through the Swiss challenge. As a result, pre-packs will assist corporate debtors in reaching an agreement with creditors and addressing the whole liabilities side of the company.

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