Last year, the corporate affairs ministry had sought comments on pre-packaged resolutions from interested parties MUMBAI : The pause in bankruptcy resolutions because of the covid-19 pandemic has prompted the government to legislate changes to the insolvency code to fast-track processing of cases where a restructuring plan has been agreed in advance between the company and its creditors, two people aware of the development said.
The so-called pre-packaged insolvency procedure, or pre-pack, will also help ease the burden on bankruptcy courts, once the changes to the Insolvency and Bankruptcy Code are approved by Parliament. “Pre-packs are probably intended to lower the burden of courts and effectively come out with an alternative solution,"