Pre-packaged Insolvency Resolution Process
The Government has recently introduced the Pre-packaged Insolvency Resolution Process, which is meant for a time bound resolution of debts of Micro, Small and Medium Enterprises (MSMEs). It gives an option to the MSMEs to get a resolution plan drawn in their favour with the consent of atleast 66% of the creditors. Its indeed likely to help in restructuring of the small enterprises in a time bound manner. However, in case, the promoters of the MSME in question are hit by Section 29A of the Insolvency and Bankruptcy Code, 2016, they shall be non-suited to submit a resolution plan and in such cases, the creditors shall arrange to submit the Resolution Plan.