New Delhi: India’s bankruptcy law, the Insolvency and Bankruptcy Code (IBC), is set for a major overhaul as policymakers seek to decisively deal with business failures that slow down expansion in Asia’s third-largest economy. The bankruptcy code of 2016 will also be amended to make it easier for the panel of creditors to make key decisions for resolution or liquidation with 66% of the vote, less than the 75% required now. The ministry is preparing a bill to amend IBC, which experts called a milestone in the evolution of the bankruptcy law in India. “The bankruptcy code is evolving. The proposed amendments will also make sure that companies filing for bankruptcy have to notify their banks and suppliers of their decision.

Source: Mint April 01, 2018 22:18 UTC