Pre-packaged plan threshold set at Rs 10 lakh for MSMEs

The threshold default for initiating the pre-packaged insolvency resolution process will be set at Rs 10 lakh and above for micro, small and medium enterprises, said MS Sahoo, chairman of the Insolvency and Bankruptcy Board of India.

Further, to maintain the resolution professional’s independence from the corporate debtor, the RP's fees for the prepacked resolution will be decided by the Committee of Creditors (CoC), Sahoo said.