Central Government sets Rs 10 lakh as minimum threshold default for initiating resolution process by MSME corporate debtor.

The Ministry of Corporate Affairs vide its gazette notification dated 9th April 2021 has set the minimum default threshold for initiation of pre-packaged insolvency resolution process by a MSME corporate debtor at Rs 10 lakh.

Pre-packs are an arrangement where the resolution of a company’s business is negotiated with a buyer before the appointment of an insolvency professional.

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