Insolvency Code News

While bankers are on an aggressive pursuit to claw back funds and maximize the resources available for bankruptcy rescue, the actual recovery rates point to the difficulty on the ground in getting the money back.

Companies entering bankruptcy have often been found to have involved in questionable deals before the process, and reversing them have remained a headache for bankruptcy administrators. Now, things may be about to change

The government is considering ways to harmonize PMLA and IBC to prevent conflicts in real estate bankruptcies. The move aims to protect homebuyers and ensure smooth asset resolution when developers face insolvency and regulatory action.

The amendments to India's Insolvency and Bankruptcy Code (IBC) are well-meaning. The introduction of a creditor-led insolvency process for corporate defaulters is aimed at speedy results. But will this new hybrid approach protect value recovery?

So far, only half-hearted steps have been taken to protect their rights. The Insolvency and Bankruptcy Code must not overlook how their being last in the pecking order of IBC claims isn’t just unfair, it could also go against India’s economy.

India's out-of-court debt resolution will be limited to well-regulated financial creditors. The framework, part of IBC amendments, allows management to retain control while under creditor supervision, promoting a quicker and cost-efficient process outside the National Company Law Tribunal.

The government has decided to keep the Insolvency and Bankruptcy Code a uniform, sector-agnostic law, rejecting calls for a specific insolvency framework for the real estate sector.

The government has proposed a key change to India's bankruptcy law that will let the firms' revival plans move ahead even if the lenders are locked in disputes over how to share the proceeds.

The government plans to amend the insolvency law with a ‘clean slate’ provision, shielding buyers of bankrupt firms from legacy dues once a resolution plan is approved.The move aims to speed up corporate turnarounds, cut litigation, and attract more investors to distressed assets.