India would do well to consider ushering in the concept of pre-packs in its insolvency regime, the National Company Law Tribunal (NCLT) President MM Kumar suggested.
Pre-packaged insolvency (pre-pack) is a procedure where a company arranges to sell all or some of its assets to a buyer before declaring its insolvency (appointing administrator to facilitate the sale). This would be seen as a powerful, legal way to sell the business to a trade buyer or third party.
It is worth considering. It should be there (in India), Kumar told BusinessLine, when asked if he was in favour of this concept.
Earlier, addressing a seminar on Business Restructuring Evolving Legal Issues and Imperatives, organised by PHDCCI, Kumar said pre-packs can be a pan…
Read the full article at: https://www.thehindubusinessline.com/economy/time-ripe-to-consider-pre-packs-under-insolvency-nclt-president/article23650251.ece