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Pre-pack under Insolvency and Bankruptcy Code

  May 08, 2021

Pre-pack under Insolvency and Bankruptcy Code

Q Why is it in News? 

The central government has promulgated an ordinance allowing the use of pre-packs as an insolvency resolution mechanism for MSMEs with defaults up to Rs 1 crore, under the Insolvency and Bankruptcy Code.

Q What are Pre-packs?

Q What are Benefits of pre-packs over the CIRP?

Q What is the key motivation behind the introduction of the pre-pack?

Q How are creditors protected? 

Q What is Swiss Challenge mechanism?