Archive · 15 Aug 2025
IBC Amendments Allow Asset Sales, Second Revival Chance
India's insolvency law, the IBC, is getting updated to make it easier to save struggling businesses.
The new rules let companies sell off parts of their assets to find buyers faster.
They also stop companies from being automatically shut down after a certain time and give them an extra 120 days to try and find a solution.
This is to give companies a better chance at recovery, especially those with businesses in different areas.
Most creditors need to agree to give the company another chance.
Amendments to the IBC allow partial asset sales to speed up disposal of distressed companies.
The amendments prevent automatic liquidation after the 330-day debt resolution window expires.
Tribunals can grant a 120-day extension to consider new resolution plans before liquidation.
A second chance at resolution requires consent from 66% of creditors.
Experts believe the flexibility in asset disposal will benefit multi-sector businesses.
- Who
- The amendments affect distressed companies, lenders, and insolvency tribunals.
- What
- Amendments to the Insolvency and Bankruptcy Code (IBC) to allow partial asset sales and provide a second chance for resolution.
- When
- The proposed amendments were tabled in Lok Sabha on Tuesday.
- Where
- India
- Why
- To speed up disposal of distressed companies and improve the chances of business revival.
- Code Discussed
- Insolvency and Bankruptcy Code (IBC)
- Amendment Focus
- Partial Asset Sales & Second Chance
- New Provision
- 120-day Extension for Resolution Plans
- Creditor Consent
- 66% required for a second chance
- Goal
- To rescue struggling businesses
