Since the year-long Insolvency and Bankruptcy Code (IBC) suspension was lifted on 25 March, India has not witnessed a surge in fresh bankruptcy filings, said experts. The special scheme allows small businesses and creditors to informally put in place a corporate rescue plan before moving bankruptcy tribunals. “The pace of filing cases under IBC is same as was earlier and we are not witnessing an increase per se. Karthik Natarajan, partner, Bhuta Shah & Co. LLP, an accounting firm, said expectations of a surge in fresh bankruptcy filings once the IBC suspension was lifted were high. According to analysts, the surge in coronavirus infections could delay economic recovery and add to the risk for financial institutions.

Source: Mint May 18, 2021 20:03 UTC