Sl. |
Amendment |
CRISIL’s view |
---|---|---|
1 |
Reduce the minimum voting threshold for the Committee of Creditors (CoC) to 66% from 75% for key decisions, and to 51% from 75% for routine decisions |
Significantly improves the decision-making powers of the CoC and can reduce resolution timelines |
2 |
Allow promoters of Micro, Small and Medium Enterprises (MSMEs) who are not categorised as wilful defaulters to bid for their assets |
MSME promoters under genuine distress/hardship can participate in the bidding process. This will reduce liquidation proceedings and improve the loan recovery rate of banks |
3 |
Pegs the rights of homebuyers on par with financial creditors |
Provides much-needed clarity, especially with respect to cases undergoing resolution under the IBC, where homebuyers are de facto creditors |
4 |
Section 29(A) of IBC tweaked to exempt pure-play financial entities from being disqualified to bid for assets; three year window for applicant which had acquired an NPA in the past under the IBC process. |
Expands the eligible pool of bidders and will enable better price discovery and therefore lesser haircuts for banks |
5 |
Streamlines the bidding process by discouraging exits and late offers |
Aids in bringing faster closure to the resolution process |
6 |
Liberalisation of terms for interim finance during insolvency process |
Will help resolution professional to keep the asset on a going concern basis and preserve its value |
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