The Associated Chamber of Commerce and Industry today successfully organised its 6th National Summit on Insolvency & Bankruptcy Code and Valuation in Mumbai.
Synopsis
Earlier this month, the government had introduced a pre-packaged insolvency resolution process for stressed MSMEs by amending the insolvency law.
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MUMBAI: State-owned
Bank of Maharashtra is looking at resolving 20-25 stressed micro, small and medium enterprise (MSME) accounts under the pre-packaged insolvency resolution process, a senior bank official said.
Earlier this month, the government had introduced a pre-packaged insolvency resolution process for stressed MSMEs by amending the insolvency law.
Under a pre-packaged process, main stakeholders such as creditors and shareholders come together to identify a prospective buyer and negotiate a resolution plan before approaching the National Company Law Tribunal (NCLT).
Summary
One of the key drivers of economic recovery in India will be the efficient movement of capital from inefficient firms to efficient ones. The economic downturn caused by the coronavirus pandemic has been severe, and India’s economy was one of the worst affected in 2020–2021. Though the economy is recovering faster than initial estimates, sustained economic recovery will not take place if stressed businesses cannot restructure their debts properly or if failing firms cannot be resolved efficiently. India’s bankruptcy law is key to solving these challenges.
In 2016 India enacted the Insolvency and Bankruptcy Code, 2016 (IBC), which was a landmark reform to the nation’s financial system and the first comprehensive law to regulate insolvency.
Bahram N. Vakil, co-founder, senior partner, AZB & Partners
Bahram N. Vakil co-founded AZB & Partners along with co-founders Ajay Bahl and Zia Mody in 2004. Vakil, who has over 38 years of experience, is a banking, bankruptcy, restructuring, infrastructure and project finance lawyer. He acts for several distressed funds, insolvency professionals, domestic and international banks and financial institutions.
Considered as one of the leading restructuring, and banking and finance lawyers in the country, Vakil has been on several government constituted committees including the recent Viswanathan Committee on Bankruptcy law reform. He also played a key role in drafting the Bankruptcy Code which was recently passed by the Parliament.