Ministry of Corporate Affairs proposes changes to
the Insolvency and Bankruptcy Code for time bound
resolution of stressed assets.
Ministry of Corporate Affairs
(“MCA”) has, vide a
notification dated 23 December 2021, proposed amendments to the
Insolvency and Bankruptcy Code, 2016
(“Code”) to facilitate a swift
admission process, streamline provisions concerning avoidable
transactions and wrongful trading, and promote timely approval of
resolution plans.
The key changes proposed by the MCA are mentioned below:
1.
Use of Information Utilities for swift admission of insolvency
proceedings
Information Utilities (“IU”) are
data repositories of financial information, that receive,
authenticate, and maintain financial information related to a
debtor. This information of the debtor such as borrowings, default,
and security interests, among others are provided to businesses,
financial institutions, adjudicating authorities, insolvency
professionals,
