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Synopsis The Code emphasizes on reorganization and insolvency resolution of the Corporate Debtor, while maximizing the value of assets of the CD and promoting entrepreneurship, availability of credit and balancing the interests of all stakeholders. iStock When the Code was introduced it took time to settle before it was used cautiously by the creditors especially operational creditors. The Government of India by way of an ordinance on April 4 2021 amended the Insolvency and Bankruptcy Code 2016 (Code) and has introduced the concept of Pre-Packaged Insolvency Process (PPIP) and the mode and manner to initiate the same. At present the concept PPIP introduced will only be applicable in case of Micro, Small and Medium Enterprises (MSME). As stated in the objective of the ordinance, the PPIP for MSME have been introduced to provide them an efficient alternative insolvency resolution process so that value maximization, which is the main objective of the Code is achieved quicker and,

Resolution planCommittee of creditors coMedium enterprisesAuthority national company law tribunalBankruptcy codePre packaged insolvency processCorporate debtorCorporate insolvency resolution processResolution professionalFinancial creditorsAdjudicating authorityNational company law tribunalPre packaged insolvencyBase resolution planBase planOperational creditors