Introduced in 2016, the Insolvency and Bankruptcy Code overhauled the Indian insolvency regime. Five years young, the work in progress Code is now in the process of adopting the Cross-Border insolvency, which was omitted from its original mandate. In 2018, a legislatively appointed committee...

May 20, 2019 witnessed the promulgation of a judgement by the United States Supreme Court which settled a circuit split created by the Court of Appeals for the First Circuit and answered a question which was the subject of quandary for the American legal fraternity for more than 35 years. A...

The Insolvency and Bankruptcy Code, 2016 (IBC) offers a mode of reorganisation for distressed corporations. The IBC’s approach to corporate rescue limits the extent to which the incumbent management of a distressed corporation can participate in its rehabilitation. This is reflected in 29A of...

Pre-packaging allows a distressed company to negotiate a plan with its creditors and a purchaser before entering formal insolvency proceedings. By allowing the terms of a plan to be negotiated before formal proceedings, pre-packs provide a quick and discreet way of completing the insolvency...

The life of a company depends upon the fine balance between its management led by Board of Directors and shareholder, and non-shareholder constituencies acting as the risk bearers. The Board of Directors therefore are subjected to fiduciary duties towards both these constituencies at all...

Insolvency and bankruptcy have always attracted a measure of stigma. The negative attitude towards insolvency emerged due to the historically harsh treatment of bankrupts and the perception of bankruptcy as a breach of a sacred relationship between the debtor and creditor. Majority of the...

In July 2019, the Competition Law Review Committee Report had recommended that Insolvency Resolution Plans (IRP) which result in combinations should be green-channelled. This would mean that IRP combinations would be automatically approved without any merger scrutiny. The theoretical basis of...

Insolvency determination is central to the formal insolvency and bankruptcy proceedings of a debtor entity. In determining whether a company is solvent or insolvent, two tests are generally used by the bankruptcy courts across all jurisdictions: the Commercial Cash Flow and the Balance Sheet...