Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ News / India/  Bankruptcy code suspended for three more months
BackBack

Bankruptcy code suspended for three more months

This was done in order to protect companies in distress due to the pandemic being dragged into bankruptcy tribunals

The suspension of IBC was a measure originally announced by Nirmala Sitharaman on 17 MayPremium
The suspension of IBC was a measure originally announced by Nirmala Sitharaman on 17 May

New Delhi: The Central government on Thursday suspended the operation of the Insolvency and Bankruptcy Code (IBC) by another three months in order to protect companies in distress due to the pandemic being dragged into bankruptcy tribunals.

An official order issued by the ministry of corporate affairs said that the suspension of the Code, issued initially for six months expiring on Thursday is extended for another three months from 25 September.

The Code was earlier suspended for six months from 25 March to support recovery of firms from the financial stress during the pandemic without facing immediate threat of being pushed to insolvency proceedings.

The suspension of IBC was a measure originally announced by Nirmala Sitharaman on 17 May. While pausing fresh bankruptcy proceedings is considered a breather for many companies, it deprives lenders the opportunity to restructure certain companies which may be beyond redemption. The idea is to save viable firms even if it comes at the cost of keeping unviable ones alive during the period.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Gireesh Chandra Prasad
Gireesh has over 22 years of experience in business journalism covering diverse aspects of the economy, including finance, taxation, energy, aviation, corporate and bankruptcy laws, accounting and auditing.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 24 Sep 2020, 07:00 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App