Debt Resolution Approvals Reach New Heights: A Look at NCLT and Bankruptcy Reforms

Monday, 2 September 2024, 01:34

Debt resolution approvals surged with 22 business rescues in August, contributing to a total of 34 in the July-September quarter. This indicates significant advancements in the NCLT’s efforts for restructuring distressed companies through the Insolvency and Bankruptcy Code (IBC). The focus remains on expediting the rescue process, influenced by ongoing bankruptcy reforms.
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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.


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