India has proposed a pre-packaged insolvency option that will allow creditors and debtors to work on an informal plan and then submit it for approval. The experience from implementation of the Insolvency and Bankruptcy Code, 2016 (the Code) including evolution of the ecosystem, stabilisation of the processes, growing jurisprudence has prepared ground to look at new initiatives to further improve the effectiveness of the Code. The efficacy of out-of-court workouts in delivering speedier resolutions provided regulators extend the same regulatory exemptions as available to settlements made under the IBC framework was considered and it was felt that Pre-packaged insolvency resolution process (PPIRP) may be introduced under the Code with necessary checks and balances, as an option for resolving insolvency.
The Ministry of Corporate Affairs (MCA) has invited comments on the proposal, and if accepted, will become part of the Insolvency and Bankruptcy Code, 2016.
Under this backdrop, Insolvency Professional Agency of Institute of Cost Accountants of India (IPA ICAI) is organizing a Roundtable Discussion on Pre-Packaged Insolvency Resolution Process under IBC, 2016 on 16th January, 2021 through Video Conferencing.