Categories: Business

Special insolvency resolution framework for MSME at advanced stage says IBBI


Special insolvency resolution framework for MSME at advanced stage

New Delhi, 26 July (Language) A Special Insolvency Resolution Framework for Micro, Small and Medium Enterprises (MSME) is in the final stages of preparation. This information was given by MS Sahu, head of the Insolvency and Bankruptcy Board of India. He said that apart from this, a pre-prepared solution framework is also being worked on. He said that the insolvency law is evolving to meet the emerging needs in a new way.

The government has suspended some provisions of the Insolvency and Bankruptcy Disability Code (IBC) in the wake of the Corona virus epidemic. The work of filing new cases under the IBC is currently suspended. This suspension can also be extended for one year. Asked what might eventually be the effect after things go back to normal after Kovid-19, Sahu said that necessity is the mother of invention and attention is being paid to rapid response. He told PTI-Language via email in an interview, "IBC is evolving to offer innovative ways to meet the emerging needs of the economy. A special insolvency resolution framework for MSMEs under Section 240A of the Code The final stage of preparation is in progress. A pre-prepared bankruptcy solution framework is also in the works. "He added that entrepreneurship will thrive as a result. IBC will grow stronger."

The government announced various exemptions under IBC in May, including loan waivers related to Kovid-19 and a special framework for MSMEs. These exemptions were announced by Union Finance Minister Nirmala Sitharaman as part of an incentive package of over Rs 20 lakh crore to revive the economy affected by the epidemic and the subsequent lockdown.

This post was published on July 26, 2020 5:25 pm

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