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Panel on pre-packaged resolution plan roll out may submit report in 7-8 days: Official

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New Delhi, Oct 14 (PTI) A panel headed by IBBI Chairperson M S Sahoo on rolling out pre-packaged resolution plans under the insolvency law is likely to submit its report to the government in the next seven to eight days, according to an official.

The Insolvency and Bankruptcy Code (IBC), which came into force in 2016, provides for a market-linked and time-bound resolution of stressed assets.

To further speed up cases under the Code, the government has been mulling introduction of a provision for pre-packaged (pre-pack) corporate insolvency resolution plan wherein a restructuring plan would be agreed upon in advance between the company and its creditors.

An IBBI official on Wednesday said the government will decide about the roll out model for pre-pack after the panel submits its report.

'For pre-pack roll out, a committee has been set up. M S Sahoo, Chairperson of IBBI, is chairing this committee and the report is expected to be submitted to the government in the next 7-8 days,' IBBI Whole Time Member Sudhaker Shukla said during an event.

The Insolvency and Bankruptcy Board of India (IBBI)is a key institution in implementing the Code.

According to Shukla, IBBI is developing a platform for stressed assets and eventually will have an auction platform as well through which investors can easily find all information about investment potential.

'The virtual data room has been launched on October 1 and the auction facility will be available in another six months. I invite you (investors) to participate in the encouraging development story of India,' he said.

He also highlighted the World Bank's report on 'Ease of Doing Business' which mentions that the average time taken to resolve an insolvency case in India has come down from 3-4.5 years to 1.6 years now.

'All indicators suggest that India is the best performer in South Asia, and comparable in results emanating from the OECD countries,' Shukla noted.

IBC has brought regulatory certainty along with time-bound processes.

'All loopholes have been plugged in, so this is a responsive regime. This is the reform by stakeholders, of the stakeholders and for the stakeholders,' he added. PTI DP RAM RVK