The apparel trade group plans to develop insolvency or exit policy framework to salvage the industry battered by the pandemic.

As per Financial Express, the framework will detect early and resolve the financial distress in entities, including the current provisions of corporate debt restructuring mechanism.

It will resolve bankruptcy and insolvency through a considered balance between reorganization and liquidation according to the Terms of Reference prepared by BGMEA.

The framework will be prepared by forming a working group with the participation from both in the public and private sectors, garment entrepreneurs, international buyers, legal professionals, chartered accountants, retired senior policy makers, retired high court officials, experienced liquidators, economic policy experts and bankers.

A technical exercise will be conducted by the group to facilitate improvements and reforms in Bangladesh's business exit regime and practices. The BGMEA has initiated the formal exercise to assess the current exit or insolvency regime and practices, and identify necessary improvement measures, reflecting pertinent improvements relevant to the garment sector, she said.

It would support the government for enacting the necessary reforms or improvements in the legal and regulatory framework for business exit, she added.

Through the exercise, the group will identify necessary improvement measures.