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President approves bankruptcy code ordinance

BY Realty Plus

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President Ram Nath Kovind on Thursday approved the ordinance for amending the bankruptcy code. The amendments will make it difficult for insolvent promoters to acquire stressed companies. This came a day after the Cabinet referred the ordinance to the President for his assent. Top sources in the government said that the ordinance makes it difficult for promoters trying to re-acquire their stressed companies, by putting stringent guidelines for an applicant to qualify. While wilful defaulters and un-discharged insolvent are disqualified, loan defaulters with NPAs for more than a year are also not eligible. Any antecedent of corporate fraud or contravention of the companies act will also disqualify a bidder for a stressed asset.

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Tags : Latest News Insolvency& Bankruptcy Code Ram Nath Kovind