Insolvency Resolution: Promoters Of Stressed MSMEs To Get Relief

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In a move aimed at providing relief to the micro, small and medium enterprises (MSMEs), a panel set up to look into various issues relating to the Insolvency and Bankruptcy Code (IBC) is considering allowing promoters of MSMEs to bid for their stressed assets even without clearing dues if they are not wilful defaulters, official sources told Financial Express. As part of its efforts to expedite the insolvency process, the panel is also examining the possibility of trimming the share of votes required for approving a resolution plan by the committee of creditors to anywhere between 60% and 66%, against the current 75%. It is also considering relaxing the related-person criterion without diluting the soul of it to enable a smoother implementation of the law, the sources said. The 14-member Insolvency Law Committee, chaired by corporate affairs secretary Injeti Srinivas, will meet on Monday to deliberate on some of these issues. Read more.