New Delhi, Sept. 18 -- Promoters seeking to halt bankruptcy proceedings by repaying creditors will need to settle dues at an early stage, instead of waiting for rival bids from potential investors, under amendments to India's Insolvency and Bankruptcy Code (IBC) now before Parliament, experts said.

The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 seeks to overhaul the rules for withdrawing bankruptcy proceedings by limiting settlements to an early window and requiring approval from 90% of lenders, a move aimed at curbing tactical delays and safeguarding the integrity of the bidding process.

The bill disallows promoters to offer settlement once lenders that placed the distressed business under administration of a professional in...