Explanation:

Recently, the Ministry of Corporate Affairs (MCA) has set up a committee to look into the possibility of including “pre-packs” under the current insolvency regime to offer faster insolvency resolution under the Insolvency and Bankruptcy Code (IBC).

• A pre-pack is an agreement for the resolution of the debt of a distressed company through an agreement between secured creditors and investors instead of a public bidding process. This system of insolvency proceedings has become increasingly popular in the UK and Europe over the past decade.
• In the case of pre-packs, the incumbent management retains control of the company until a final agreement is reached. Transfer of control from the incumbent management to an insolvency professional as is the case in the Corporate Insolvency Resolution Process (CIRP) leads to disruptions in the business and loss of some high-quality human resources and asset value.
• This process would likely be completed much faster than the traditional CIRP which requires that the creditors of the distressed company allow for an open auction for qualified investors to bid for the distressed company.

Hence only statements 1&2 are correct.