Author: Kirti Panchal, Student at Faculty of Law, Delhi University
ABSTRACT
The Insolvency and Bankruptcy Code (IBC) 2016 brought about significant changes to the legal framework in India that governs the insolvency and restructuring of businesses. The International Business Companies Act (IBC) offers an extensive framework for the resolution of corporate insolvency and aids corporate restructuring by making it possible to resolve troubled assets in a manner that is time-bound and efficient.
Key provisions of the IBC pertaining to corporate restructuring are examined in this paper. Topics covered include the resolution professional’s function, the insolvency resolution procedure, the different types of creditors, and the allocation of assets. It examines the numerous corporate reorganisation methods available under the IBC, such as the resolution plan, liquidation, and voluntary liquidation.
The paper also examines the effects of the IBC on corporate restructuring in India, such as the rise in the number of companies going bankrupt and the appearance of new players in the market for “distressed assets.” It discusses the challenges and opportunities presented by the IBC to stakeholders, including creditors, debtors, and investors, and investigates the IBC’s prospective effects on the Indian economy.
This paper evaluates the IBC’s efficacy in promoting a dynamic and efficient corporate restructuring regime in India and in facilitating the resolution of corporate insolvency.
