Pre-packaged insolvency for small & medium firms

Pre-packaged insolvency (or “pre-pack”) refers to the process by which a distressed corporation formulates a resolution plan with its creditors and a purchaser before the initiation of insolvency proceedings. On April 4, 2021, Government of India promulgated an ordinance introducing pre-packaged insolvency for Micro, Small, and Medium Enterprises (MSMEs). The framework of the ordinance governs the pre-formal and the formal stages of pre-packs. The formal stage commences once an application for pre-packaged insolvency has been filed. At the pre-formal stage, an MSME can negoti.....

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