Govt sets trigger amount as Rs 10 lakh for MSME pre-packs scheme

Current GK ( Master) Giovernment Schemes

The Central government has set a payment default of Rs 10 lakh as the trigger for bankruptcy proceedings of small businesses under the new simplified scheme called pre-packs.
This would be the minimum threshold of payment default for micro, small and medium enterprises (MSMEs) under the pre-pack scheme.
Pre-pack for MSMEs is a hybrid corporate rescue process, which has elements and virtues of both formal and informal insolvency proceedings. A resolution plan is negotiated between the debtor and its creditors before the commencement of formal proceedings.