India's bankruptcy regulator proposes streamlined insolvency framework. Financial creditors holding 51% of debt can now initiate faster resolution without lengthy tribunal admission processes. The new Creditor-initiated Insolvency Resolution Process compresses timelines from 330 days to just 150 days, with possible 45-day extension. Corporate debtors must respond within 30 days to creditor notices. The NCLT's role narrows to asset moratorium and plan approval. Resolution plans must be submitted within 120 days of commencement. This approach aims to preserve business continuity and minimize asset erosion while reducing liquidation risks. The framework prioritizes operational stability in critical sectors. Stakeholders can comment until April 28 before final regulations take effect under amended Insolvency and Bankruptcy Code provisions.
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