LegalPay Partners with Jumbo Finance to Fund Small Ticket CIRP Cases

Legal technology startup LegalPay has partnered with Mumbai-based non-banking finance firm Jumbo Finance Ltd to give interim finance to the companies undergoing the Corporate Insolvency Resolution Process (CIRP), the Economic Times of India reported. New Delhi-based LegalPay, which also works as an alternative-investments platform specializing in legal financing, is also in talks with some more such NBFCs to fund companies under CIRP. mid-market companies, including micro-small and medium enterprises (MSMEs), undergoing insolvencies requiring up to Rs 5 crore. Under the Insolvency & Bankruptcy Code (IBC) 2016, interim financing is a short-term super-secure loan that allows an insolvent company to remain operational while undergoing a Corporate Insolvency Resolution Process (CIRP). According to the recent RBI financial stability report, the gross non-NPA ratio will likely increase from 7.48% in March 2021 to 9.80 % - 11.22 % in March 2022. Read more.