Facts for Prelims (FFP)
Source: Economic Times
Context: The Pre-packaged Insolvency Resolution Process (PPIRP) has successfully facilitated the full settlement of operational creditors’ claims for five companies.
About The Pre-packaged Insolvency Resolution Process (PPIRP):
- The Pre-Packaged Insolvency Resolution Process (PPIRP) is a mechanism for resolving corporate insolvency that was added to the Insolvency and Bankruptcy Code (IBC) in 2016.
- It’s designed to be faster and more efficient than other processes and to minimize disruption to businesses.
The PPIRP process involves:
- Preparing and negotiating a resolution plan before insolvency proceedings begin
- Implementing the plan immediately when insolvency proceedings start
- Completing the entire process within 120 days
