Corporate Rescue & Insolvency

Insolvency regulation is one of the fundamental means of credit protection which allows redeployment of assets for more productive uses and conservation of potentially profitable companies. As per the World Bank Report on “Doing Business 2010”, India ranks 138th in terms of closing down businesses which has fueled the need to reform our existing insolvency laws. Provisions in the Companies Bill, 2009 dealing with insolvency issues are a commendable step in this direction.

The IICA “Forum on Corporate Rescue and Insolvency” through its dialogue with various stakeholders is in the process of highlighting the issues/problems in the existing Insolvency regime and finding the possible solution. The first meeting of the Forum was held on 10th September, 2009 wherein the LLP Winding up Rules, Role of Insolvency Practitioners and the importance of Corporate Debt Restructuring Mechanism were discussed. The 2nd Forum meeting is scheduled for 16th February, 2009 which attempts to draw a “Framework for Insolvency Practitioners.”