Author: Ashika Seenivasan, Student at Sastra Deemed University, Thanjavur
Co-Author: Sheetal Suresh, Student at Sastra Deemed University, Thanjavur
The Pre-packaged Insolvency Resolution Process (PIRP) is a mechanism introduced under the Insolvency and Bankruptcy Code (IBC) in India to provide a streamlined and efficient resolution process for insolvent companies. Unlike the traditional Corporate Insolvency Resolution Process (CIRP), PIRP involves formulating a resolution plan before initiating formal insolvency proceedings, thereby enabling a faster transition from financial distress to the implementation of the plan. This abstract explores the key features and benefits of the PIRP. It highlights that the purpose of PIRP is to ensure time and cost efficiency, business continuity, and stakeholder alignment in the insolvency resolution process. The abstract outlines the prerequisites for initiating the PIRP, including obtaining consent from a majority of financial creditors. It also discusses the applicability of PIRP to specific categories of corporate debtors. Furthermore, the abstract delves into the advantages of PIRP, such as maximizing value, reducing litigation, and instilling confidence in the insolvency resolution framework. It highlights that PIRP promotes collaboration among stakeholders, preserves the value of the debtor company’s assets, and minimizes disruption to business operations. By presenting a concise overview of the pre-packaged insolvency resolution process, this abstract aims to provide a clear understanding of its purpose, prerequisites, applicability, and advantages. It serves as a starting point for further exploration and analysis of PIRP’s implementation and impact on the insolvency resolution landscape in India.