Govt proposes framework for cross-border insolvency; seeks comments till Dec 15

govt proposes framework for cross border insolvency seeks comments till dec 15

Sumary of Govt proposes framework for cross-border insolvency; seeks comments till Dec 15:

  • The government is preparing to come out with a cross-border insolvency resolution framework based on the UNCITRAL model law and is proposed to be made applicable for both corporate debtors as well as personal guarantors to such debtors.
  • The corporate affairs ministry, which is implementing the Insolvency and Bankruptcy Code (IBC), has sought comments on the draft framework till December 15. Broadly, cross-border insolvency process pertains to those debtors having assets and creditors overseas.
  • According to the ministry, the need for having robust institutional arrangements to deal with cross-border insolvency issues has gained momentum in various jurisdictions, particularly under the aegis of UNCITRAL Model Law, during the last few decades.
  • The UNCITRAL Model Law on Cross-Border Insolvency, 1997, is the most widely accepted legal framework to deal with cross-border insolvency issues.
  • The law provides a legislative framework that can be adopted by countries with modifications to suit the domestic context of the enacting jurisdiction.
  • Given this, applying cross-border insolvency provisions to the pre-pack process may not be suitable at this stage,” it noted.

Want to know more click here go to source.

From -

Generic selectors
Exact matches only
Search in title
Search in content

Site Language

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.