IBC reform moots skirting lender disputes for firms’ turnaround plan

In a move that will facilitate a quicker turnaround of insolvent companies, the government has proposed a key change to the country’s bankruptcy law that will let the firms’ revival plans move ahead even if the lenders are locked in disputes over how to share the proceeds, two people aware of the discussions within the government said. A provision in the Insolvency and Bankruptcy Code (Amendments) Bill, 2025, tabled in Parliament, allows tribunals to first approve a company’s resolution plan and take up disagreements among creditors on distribution later, they said. Read Article