VIA Economy and Finance Forum in association with MSME Sahyog jointly organised a panel discussion on ‘Insolvency and Bankruptcy Code 2016’ recently at VIA auditorium and also on virtual platform. The discussion highlighted the newly introduced Pre-Packaged Insolvency Resolution Process’ (PPIRP) which is a newly introduced hybrid corporate rescue process which blends elements and virtues of both formal and informal insolvency proceedings and how Insolvency and Bankruptcy Code (IBC) continues to contribute to the Indian growth story. IP Manisha Agarwal, CMA, IP and Registered Valuer for SF&A from Nagpur explained various financial-stress-resolution processes under IBC Code and discussed the importance of resolving stressed assets and its benefits for the Indian economy. IP Sandeep Chitkara, Management Consultant and IP from Ludhiana said that the ‘Pre-Packaged Insolvency Resolution Process’ (PPIRP) allows MSMEs to prepare a resolution plan with creditors. Private discussions can take place between promoters and financial creditors before initiating insolvency proceedings.

 

“PPIRP offers an alternate insolvency resolution process for MSMEs, which is more cost-effective and faster. It offers flexibility as compared to rigorous process under CIRP (Corporate Insolvency Resolution Process), and helps maximise outcome for all stakeholders,” he said. IP Vijay Usharia, Retired General Manager, Union Bank of India and IP from Indore helped MSMEs explore various schemes being offered by RBI and other banks to alleviate financial stress caused by COVID. He explained mechanisms such as restructuring for MSMEs, COVID-19 restructuring, liberalised working capital assessment, and guaranteed emergency line of credit (GECL). IP Atul Grover, Advocate and IP Founder of MSME Sahyog from Chandigarh demonstrated the Sahyog platform through which MSMEs can search and reachout to MSME-Warriors. “The Sahyog software helps MSMEs file their cases online which gets assigned to IBC practitioners for pro-bono advisory,” Grover added.

 

He also gave insight into the developments of upcoming IBC technologies which can help MSMEs reduce the timeline for resolution, and ensure legal compliance by the IP community. Earlier, Girish Deodhar, Chairman of MSME Forum informed about the overview of MSME Sahyog. Suresh Rathi, President, VIA informed about the MSME-Sahyog empowers small business owners and entrepreneurs by providing them with the guidance and support they require towards relieving their stress through best restructuring and reorganisation schemes. The session was moderated by Manisha Agarwal. Rohit Agrawal proposed a vote of thanks. Present were Atul Pande, IPP – VIA, Reeta Lanjewar, Past Chairperson–LEW, Suresh Motwani, Branch Manager, Central Bank of India, Nagpur, MSMEs, industrialists, professionals and entrepreneurs joined the session.