Govt likely to unveil group and cross-border insolvency rules within 3-4 months

India is set to introduce new rules for group and cross-border insolvency, aiming to enhance creditor recoveries and align with international standards. The IBC (Amendment) Bill addresses challenges since 2016, focusing on efficient resolution of complex corporate structures and cross-border assets. Experts highlight the importance of a UNCITRAL-based framework for effective implementation. Soumitra Majumdar, Partner at JSA Advocates & Solicitors, argues that minimising inter-creditor disputes is essential for successful group insolvency and proposes a three-pronged strategy to achieve this. They are — due recognition and protection of pre-insolvency inter-creditor arrangements; disincentives for creditors who do not comply with obligations or strategies as approved by the specified majority of the Committee of Creditors (COCs); and proper coordination amongst the various COCs. Read more