Following the fall of Lehman Brothers and the ensuing financial crisis, the world has witnessed a proliferation of various ‘light touch’ financial restructuring techniques in the form of pre-insolvency proceedings. These proceedings inhabit a space on the spectrum of insolvency and restructuring law, somewhere between a pure contractual workout, the domain of contract law, and a formal insolvency or rehabilitation proceeding. Policymakers around the globe have responded to market developments by embarking on an aggressive new phase of corporate rescue oriented legislative endeavour that focuses on so-called pre- insolvency or preventive insolvency proceedings.
The ILA has established a Chair for Preventative & Pre-Insolvency Resolution on 27th September 2023 to:
- Undertake research and other activities in pre-insolvency resolution (pre-pack, fast track and other forms of pre-insolvency processes) and related areas for the benefit of insolvency ecosystem in India and beyond.
- Promote preventive insolvency practices.
- Develop best practices for pre-insolvency resolution and preventive insolvency.
- Design and deliver educational training programmes.
- Collaborate with other ILA Chairs.
- Complement and support the work of ILA Insolvency Scholars Forum.
- Encourage development of young scholars in collaboration with ILA Emerging Scholars Forum.
- Undertake work ancillary to above objectives.
The Steering Committee comprises as under:
The paper titled ‘Hybrid Insolvency Resolution Process – A Creditor Led, Debtor in Possession Resolution Process for India’ has been authored by Mr. Sumant Batra, Insolvency Lawyer, President Insolvency Law Academy, together with Mr. Nitin Jain, Partner, Ernst & Young India, and Ms. Pooja Mahajan, Managing Partner, Chandhiok & Mahajan. Mr. Varun Gupta and Mr. Piyush Mantri from Ernst & Young, and Ms. Vaidehi Gulati and Mr. Shiv Malang from ILA provided invaluable support in research and writing of this paper.
