The government Wednesday cleared substantial changes to the insolvency law To ensure timely completion of resolution process.
As many as seven amendments would be made to the Insolvency and Bankruptcy Code, which is helping in resolution of stressed assets.
The amendments are aimed at filling critical gaps in the corporate insolvency resolution framework while at the same time maximising value from the resolution process.
The amended Code would also provide greater clarity on permissibility of corporate restructuring schemes, clarity on rights and duties of authorised representatives of voters, manner of distribution of amounts amongst financial and operational creditors as well as applicability of the resolution plan on all statutory authorities.
The Cabinet has approved Insolvency and Bankruptcy Code (Amendment) Bill, 2019. The amendments would “enable the government to ensure maximisation of value of a corporate debtor as a going concern.
Source- etrealty