Pre-Package Insolvency Resolution Process: A Lifeline For MSMES Amidst Covid 19 Turmoil

Sumukh Aggarwal, Law College Dehradun, Uttaranchal University

Mr. Ujjwal Kumar Singh, Law College Dehradun, Uttaranchal University

ABSTRACT

The Pre-packaged Insolvency Resolution Process (Pre-pack) has become a crucial instrument for Micro, Small, and Medium Enterprises (MSMEs) as they navigate the economic consequences of the COVID-19 epidemic. This abstract examines the underlying reasoning behind Pre-pack procedures designed to tackle the distinct difficulties encountered by Micro, Small, and Medium Enterprises (MSMEs) in the context of the pandemic. It emphasizes the need of prompt and debtor-friendly solutions in view of the unparalleled disruption to business activities and financial equilibrium. It highlights the significance of implementing efficient and effective insolvency frameworks to support the revival and sustainability of distressed MSMEs during and after the COVID-19 crisis. It does so by examining the key features, regulatory considerations, operational challenges, and potential benefits of Pre-pack processes for MSMEs. Pre-packs provide a potential opportunity for conserving value, saving employment, and promoting economic resilience in the MSME sector by offering a timely and consensus-driven procedure for debt restructuring and resolution.

Keywords: Insolvency, MSMEs, Corporate Debtor and Financial Creditor