IBC Bill proposes wider look-back time for preferential transactions

The Insolvency and Bankruptcy Code (Amendment) Bill proposes a wider look-back period for preferential transactions, counted from the initiation of insolvency instead of its commencement, to capture a broader range of transactions. According to Soumitra Majumdar, partner at JSA Advocates & Solicitors, the amendments are a significant step that will enhance the efficacy of the IBC and make projects bankable by project financiers. The Bill also proposes other changes, including allowing part resolution of assets, ensuring government concessions continue during the resolution process, and enabling the committee of creditors to rectify defects in a resolution plan. These changes aim to prevent corporate debtors from delaying applications to exclude assets and promote efficient resolution of insolvency cases. Read Article