Centre issues MSME prepackaged insolvency framework but key thresholds still missing

Framework is out, but the money thresholds aren’t yet set

The Centre has notified a framework for prepackaged insolvency resolution for MSMEs under the Insolvency and Bankruptcy Code. However, it has not yet set or notified the threshold amounts needed to trigger prepackaged insolvency. The move provides a legal pathway, but businesses may still face uncertainty until the key thresholds are announced.