New Delhi, Aug. 25 -- The Centre is laying the groundwork for a new insolvency framework that could see a single administrator and a common bench for resolving bankruptcies of related companies within the same business group.

According to two people familiar with the matter, the new framework is designed to make the process more efficient, cut costs, and improve the overall value for creditors. The proposed group insolvency rules aim to streamline the complex and often lengthy process of untangling distressed corporate empires.

"The rules will be designed to keep the cost of debt resolution of the entities minimum, avoid duplication, preserve the synergy among the entities and improve the overall value realization of the enterprises," o...