IBBI proposes financial creditor nod for big deals in distressed firms
Mint·2h ago·Neutral
What Happened
The Insolvency and Bankruptcy Board of India released draft regulations for the debtor-in-possession bankruptcy model on Wednesday. Banks can initiate proceedings without replacing management if firms obtain financial-creditor approval for transactions above a set monetary threshold. The process includes 50-day bidding periods and 15-day submission windows for investors. Public feedback ends April 28. Wilful defaulters and undischarged insolvents cannot bid for assets.
Key Entities
IBBIInsolvency and Bankruptcy Codedebtor-in-possession modelcreditor-initiated insolvency resolution processMinistry of Corporate AffairsRBI