Scheme of revival and rehabilitation

(1)

The company administrator shall prepare or cause to be prepared a scheme of revival and rehabilitation of the sick company after considering the draft scheme filed along with the application under section 254.

(2)

A scheme prepared in relation to any sick company under sub-section ( 1 ) may provide for any one or more of the following measures, namely:—

(a)

the financial reconstruction of the sick company;

(b)

the proper management of the sick company by any change in, or by taking over, the management of such company;

(c)

the amalgamation of—

(i)

the sick company with any other company; or

(ii)

any other company with the sick company;

(d)

takeover of the sick company by a solvent company;

(e)

the sale or lease of a part or whole of any asset or business of the sick company;

(f)

the rationalisation of managerial personnel, supervisory staff and workmen in accordance with law;

(g)

such other preventive, ameliorative and remedial measures as may be appropriate;

(h)

repayment or rescheduling or restructuring of the debts or obligations of the sick company to any of its creditors or class of creditors;

(i)

such incidental, consequential or supplemental measures as may be necessary or expedient in connection with or for the purposes of the measures specified in clauses ( a ) to ( h ).

Notes, amendments & references (1)

Omitted vide The Insolvency and Bankruptcy Code, 2016. To view the notification, Click Here