LegalPay partners with Jumbo Finance to fund small ticket CIRP cases
Legal technology startup LegalPay has partnered with Mumbai-based non-banking finance firm Jumbo Finance Ltd to give interim finance to the companies undergoing the Corporate Insolvency Resolution Process (CIRP).
New Delhi-based LegalPay, which also works as an alternative-investments platform specializing in legal financing, is also in talks with some more such NBFCs to fund companies under CIRP. The firm is targeting mid-market companies, including micro-small and medium enterprises (MSMEs), undergoing insolvencies requiring up to Rs 5 crore.
Under the Insolvency & Bankruptcy Code (IBC) 2016, interim financing is a short-term super-secure loan that allows an insolvent company to remain operational while undergoing a Corporate Insolvency Resolution Process (CIRP).