Pre-packaged Insolvency in India: Lessons from USA and UK
16 Pages Posted: 5 Feb 2020
Date Written: January 13, 2020
Pre-packaged bankruptcy, commonly referred to as “Pre-packs” finds its roots in United States and United Kingdom; but is yet to be formally integrated in the Indian bankruptcy regime. While the latest Insolvency and Bankruptcy Code, 2016 has been helpful in improving the stressed asset statistics, the statute is still undergoing teething troubles and has scope for bringing in many improvements such as introducing Pre-packs. In this backdrop, this term paper discusses the basic features of Indian insolvency structure and how Pre-packs will fare in the market given the current regulatory regime. The paper analyses the corporate insolvency resolution process in India, highlights specific challenges to introduction of Pre-packs and presents a holistic overview of the benefits as well as disadvantages that Pre-packs would bring along with them.
Keywords: Pre-packs, Pre-packaged Insolvency, Corporate Insolvency Resolution Process, Insolvency Resolution Professional, Resolution plan
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