Introduction. This article discusses the theory of corporate restructuring and its importance in the country. Business restructuring is the redesigning of existing business strategies and aspects for various reasons. Usually a corporate’s varied challenges and financial adjustments to its assets and liabilities necessitates this process. It analyses how the different avenues of business restructuring exercises such as mergers, acquisitions, amalgamations, compromises, and arrangement are processed with in respect to the process provided under the Insolvency and Bankruptcy Code 2016. Introduction followed by brief Literature Review. Research methods are exploratory in nature, since the study has to explore the impact of IBC on Indian Economy. Results and discussions. The Insolvency and Bankruptcy Code (IBC) is considered as the major structural legal reform in the world. It is making a robust economy by reducing the amount of Non-Performing Assets and improving Ease of Doing Business (EoDB) ranking. It has attracted investors from abroad because they now seek each developing nation as a legible place for investment owing to the reasons as, smaller timeframe for resolution reduces risk of losing investment and flexible exit policy, even when company becomes insolvent the IBC gears towards maximum realisation of value of assets. It has given a new identity to the developing economy on the International platform. It seeks to create a single unified law for insolvency and bankruptcy. IBC carries out this unique restructuring by maintaining an upper-hand on the Debtor (the business) and affirming its creditor-in-control locus. It also discusses how an IP performs the function of re-engineering with respect to sick companies that fall under the rigours of IBC. Conclusions. The approach under the IBC towards reviving a “sick” business in a time-bound manner of 180-270 days. Till date, business re-engineering under IBC has revived 221 business, while constant updates in the legislation increase the chances of more business revivals.
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Binoy, Joy Kattadiyil and Islamov, Bakhtiyor Anvarovich
"CIRP RE-ENGINEERING AND RE-STRUCTURING UNDER
INSOLVENCY AND BANKRUPTCY REFORMS,"
Scientific reports of Bukhara State University: Vol. 5
, Article 12.
Available at: https://uzjournals.edu.uz/buxdu/vol5/iss3/12