Lessons from pre-packaged insolvency cases in India: a long road ahead

Abstract

Introduced in April 2021, pre-packaged insolvency was heralded as the next frontier of insolvency reforms in India. However, in the 2 year period since, we have only seen one resolved case, and a total of 8 filings. Significant delays compared to the statutorily targeted timelines plague the pending cases. The low adoption of the pre-pack resolution process in general, and particularly in response to the impact of the pandemic, belies the aim of efficient organisational turnaround. This paper uses case analysis and interviews with experts to understand the bottlenecks and the slow disposal of the cases.