Government Notifies IBC Amendment Act, 2021 Enables Pre-Packaged Insolvency Resolution for MSMEs - 13.08.2021

Central Government has notified the Insolvency and Bankruptcy Code Amendment Act, 2021 which has enabled Pre-packaged Insolvency Resolution for MSMEs. The Bill introduces an alternate insolvency resolution process for micro, small, and medium enterprises (MSMEs), called the pre-packaged insolvency resolution process (PIRP). PIRP may be initiated only by debtors. The debtor should have a base resolution plan in place. During PIRP, the management of the company will remain with the debtor.

Tags : Central Government IBC Amendment Act 2021

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