Debt Resolution Approvals Reach New Heights: A Look at NCLT and Bankruptcy Reforms
Debt Resolution Approvals Update
Recently, the National Company Law Tribunal (NCLT) has been instrumental in approving the debt resolution plans of 22 businesses during August, thereby contributing to a wider trend of business rescues.
Business Rescues and Trends
This brings the total approvals in the second quarter to 34, aligning with the corporate restructuring schemes from July. Notably, over half of these approvals were from distressed companies in the real estate and hospitality sectors.
Ongoing Reforms in Bankruptcy Framework
- Incorporation of 86 changes to the regulatory framework in 2023-24.
- Fast-tracking business rescues through amending the Insolvency and Bankruptcy Code (IBC).
- Focus on enhancing NCLT infrastructure and technology integration among stakeholders.
As part of efforts to bolster the bankruptcy framework, the government has amended the IBC several times since its initiation in 2016. The push for a more efficient debt resolution system remains a priority.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.