Global Restructuring Advisory
Advising companies, financial sponsors and other stakeholders involved in challenging situations and distressed transactions.Global Restructuring Advisory
Paul Williams, Managing Director in Duff & Phelps’ Restructuring practice, was featured in The Financial Express discussing the pros and cons of incorporating the pre-pack insolvency structure in India’s Insolvency and Bankruptcy Code (IBC) regime.
A pre-pack sale is a structured sale where a part of the sales of a company’s business or assets is agreed upon prior to the formal appointment of an insolvency professional. This means the purchaser must have its own structures and funding in place before the deal is completed.
Since the Enterprise Act in 2002, pre-packs have gained popularity in the UK market and are frequently used for Chapter 11 filings. These deals mostly result in the survival of the business, and not the company. Currently, the Indian system does not facilitate the pre-pack process, however with the evolution of IBC one can anticipate its inclusion in the near future. In that case, a “pre-IBC window for the resolution of stressed assets, which will complement the existing framework and not substitute it,” could save both time and legal costs.
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