Business Opportunity through IBC

The insolvency and bankruptcy code, 2016 (IBC) has gradually evolved and now offers a value route for people to grab various business opportunity through it. Corporate insolvency prior to 2016 was a disordered process but the IBC brought a breath of fresh air, offering a timebound solutions. Business transactions thrive on stability, clarity and more dependable. Acquisition through IBC are cleaner and benefit from a time-bound mechanism that is free from the risk of existing and unknown obstructing acquisitions.

What is insolvency?

Insolvency refers to situations where a debtor cannot pay the debts they owe. This may arise due to various reason which lead to insufficient cash management or reduction in cash flow or increase in expenses etc.

What is bankruptcy?

Bankruptcy is a legal process engaged by the individual or business who is unable to repay the debts. This begins by the petition raised by the debtor or by the creditor. The assets are measured and revalued and utilized to repay the debts.

Corporate debtor:

Corporate debtor means a corporate person who owes a debt to any person

Financial creditor

Financial creditor as a person to who a financial debt is due, merely a operational creditor to whom such debt has been legally assigned or transferred.

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