Insolvency and Bankruptcy Code (Amendment) Ordinance introduces the pre-packaged insolvency resolution process

The president has promulgated the Insolvency and Bankruptcy Code (Amendment) Ordinance to introduce the pre-packaged insolvency resolution process. An application for initiating prepackaged insolvency resolution process may be made in respect of a corporate debtor classified as a micro, small or medium enterprise under the Micro, Small and Medium Enterprises Development Act, 2006. An application for initiating pre-packaged insolvency resolution process may be made in respect of a corporate debtor, who commits a default, subject to the following conditions, that—

1. It has not undergone pre-packaged insolvency resolution process or completed corporate insolvency resolution process, as the case may be, during the period of three years preceding the initiation date;
2. It is not undergoing a corporate insolvency resolution process;
3. No order requiring it to be liquidated;
4. It is eligible to submit a resolution plan under section 29A;
5. The financial creditors of the corporate debtor, not being its related parties, representing such number and such
   manner as may be specified, have proposed the name of the insolvency professional to be appointed as resolution
   professional for conducting the prepackaged insolvency resolution process.