As reported by ET on November 23, the ordinance seeks to ensure that promoters do not gain backdoor entry into their companies which had failed to repay lenders. "The law will now also cover personal guarantors to the insolvent company undergoing resolution. Proprietorships will also be taken up for insolvency resolution. "It opens up a huge opportunity... investors need not work with the promoters who brought the company to the distress state." The ordinance also allows the committee of creditors to reject any resolution plan involving ineligible parties even if it has already been presented.

Source: Economic Times November 23, 2017 10:05 UTC