MUMBAI: Concerns over delay in arriving at bankruptcy resolutions amid the covid-19 pandemic has prompted the government to examine regulations for a pre-packaged Insolvency and Bankruptcy Code (IBC) scheme, said two people aware of the development.
The scheme, which will have a pre-negotiated deal and the respective tribunal will just take it up for approval, is expected to ease the burden of the National Company Law Tribunal (NCLT).
Shardul Shroff, executive chairman at law firm Shardul Amarchand Mangaldas & Co told Mint in an interview that pre-pack is a solution, where parties come forth with an existing offer. “You offer a settlement and submit it to the creditors committee and then the CoC would negotiate it to an agreeable level,"