Govt. extends IBC pause by 3 months -The Hindu-25-09-2020

Corporates in India have got three more months of relief from the invocation of insolvency and bankruptcy (IBC) proceedings by lenders.

Details:

The government has extended the suspension of relevant provisions of IBC against firms defaulting on their loans since March 25, 2020.

The proposed amendments were brought in the form of an Ordinance in June 2020, in the wake of the COVID-19 Pandemic and the subsequent lockdown.

It suspended the application of three provisions (Sections 7, 9 and 10 of the IBC) to prevent any company, stressed due to the COVID-19 situation, from being pushed into insolvency proceedings.

Sections 7 and 9 pertain to the initiation of corporate insolvency proceedings by a financial creditor and an operational creditor, respectively.

Section 10 relates to filing an application for insolvency resolution by a corporate.

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