The government has started interministerial discussions on the upcoming Insolvency and Bankruptcy (IBC) amendment Bill, which proposes an overhaul of the law, senior officials told Business Standard.
The Bill proposes a separate framework for real estate insolvency with certain exemptions. The draft Bill has also inserted an enabling clause to allow the government to increase the ambit of prepackaged insolvency for larger companies in the future.
However, the prepackaged scheme for insolvency is not being opened up for larger companies just yet. The voting threshold for initiating the pre-packaged insolvency is also being lowered from 61 per cent to 51 per cent of the unrelated financial creditors. The Bill takes off from the discussio…
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