Pre-packaged insolvency eligibility requires corporate debtor approval, creditor consent, and a compliant base resolution plan. Corporate debtors eligible to initiate a pre-packaged insolvency resolution process include micro, small and medium enterprises, and other corporate debtors meeting prescribed conditions of default, prior insolvency history, absence of liquidation, and eligibility to submit a resolution plan. Initiation also requires creditor and internal approvals, including approval by financial creditors representing not less than fifty-one per cent in value, a declaration by the majority of directors or partners, and a special resolution or equivalent resolution by members or partners. The corporate debtor must also supply the declaration, resolution, base resolution plan, and specified information and documents before seeking creditor approval.
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Provisions expressly mentioned in the judgment/order text.
Pre-packaged insolvency eligibility requires corporate debtor approval, creditor consent, and a compliant base resolution plan.
Corporate debtors eligible to initiate a pre-packaged insolvency resolution process include micro, small and medium enterprises, and other corporate debtors meeting prescribed conditions of default, prior insolvency history, absence of liquidation, and eligibility to submit a resolution plan. Initiation also requires creditor and internal approvals, including approval by financial creditors representing not less than fifty-one per cent in value, a declaration by the majority of directors or partners, and a special resolution or equivalent resolution by members or partners. The corporate debtor must also supply the declaration, resolution, base resolution plan, and specified information and documents before seeking creditor approval.
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