New Delhi: The government on Wednesday cleared amendments to the Insolvency and Bankruptcy Code (IBC) to enforce strict timelines for the rescue of companies and maximize the value of the insolvent company as a going concern. The Cabinet approved seven amendments to the Code, which will now be taken to Parliament. An official statement said the amendments aim to fill the critical gaps in the corporate rescue framework specified in the Code. The amendments set 330 days as the maximum time allowed for bankruptcy resolution, including for litigation and other judicial process. Employees other than workmen and unsecured creditors and operational creditors are further down the line in the priority of receiving resolution or liquidation proceeds.

Source: Mint July 17, 2019 11:03 UTC