Insolvency and Bankruptcy Code likely to be tweaked for cross-border cases, says report

The Indian government is planning to promote an ordinance amending the Insolvency and Bankruptcy Code and adding a chapter on cross-border insolvency, Business Standard reported.

The amendment is likely to get a cabinet nod soon and the ordinance will be based on the UNCITRAL model law for cross-border insolvency cases, the report said citing a source in the government.

A cross-border insolvency law empowers foreign creditors get money lent to Indian corporate entities. Indian companies can also claim their dues from foreign companies, said the report.

The newspaper said that the law for the cross-border insolvency cases can come only after the Lok Sabha elections.