Under the Insolvency and Bankruptcy Code (IBC), 2016, a resolution plan for a defaulting corporate debtor can only be approved by the Committee of Creditors (CoC) if it secures a minimum voting threshold of ___% of the financial debt.
- crowding out
- Production
- 66
- public
Answer: 66
Originally set at 75%, the threshold was lowered to 66% by the government to prevent a single, stubborn minority creditor from blocking viable resolution plans and forcing the liquidation of a company. This supermajority requirement ensures that the collective wisdom of the majority creditors prevails, facilitating faster and more realistic revival of stressed assets.