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," one of the two people said on the condition of anonymity. The rules will be issued once the IBC (Amendment) Bill 2025 is cleared by the Parliament. The new framework addresses the long-standing need for a system to rescue companies linked by common ownership or control, a topic that has been frequently discussed since the IBC's debut in 2016. Distressed group companies will have to sign a coordination agreement, which will be binding on them and their creditors, the people cited above said. The National Company Law Tribunal (NCLT) will be empowered to enforce the agreement. Such an agreement will set the protocols for information sharing, joint negotiations, claim management and restructure of multiple entities as one economic unit, without affecting their status as separate legal entities. Under IBC, a committee of creditors (CoC) is formed for every company undergoing bankruptcy resolution. The new rules will propose forming a new panel comprising members from the CoCs of insolvent group companies. This apex committee will oversee the debt resolution plan, the people cited above explained. Queries emailed to the ministry of corporate affairs and to IBBI on Friday seeking comments remained unanswered. "It would be interesting to see what would be provided in the rules. In most of the foreign jurisdictions having advanced insolvency regimes, the larger focus to address a group insolvency scenario starts with procedural coordination as indicated in the proposed IBC (Amendment) Bill, 2025," said Surendra Raj Gang, partner, deals, debt and special situations atGrant Thornton Bharat LLP....