IBC operations suspended for another three months
PrintListen to this Article
0:00
0:00
The Centre on Thursday suspended the operation of the Insolvency and Bankruptcy Code (IBC) by another three months to protect companies in distress from being dragged into bankruptcy tribunals in view of the crisis.
The ministry of corporate affairs said the suspension of the Code, issued initially for six months, is extended for another three months starting 25 September. The Code has been suspended with effect from 25 March to allow financially-stressed companies to recover without facing an immediate threat of being pushed into insolvency proceedings.
The suspension, which was announced by finance and corporate affairs minister Nirmala Sitharaman on 17 May, had led to heated debates about its desirability with former Reserve Bank of India governor Raghuram Rajan questioning its utility.
Rajan had said suspending fresh bankruptcy cases was unfortunate as it viewed resolution as a punishment and not as a way of restructuring capital structure and ownership, Mint had reported. #casansaar (Source - LiveMint)
The ministry of corporate affairs said the suspension of the Code, issued initially for six months, is extended for another three months starting 25 September. The Code has been suspended with effect from 25 March to allow financially-stressed companies to recover without facing an immediate threat of being pushed into insolvency proceedings.
The suspension, which was announced by finance and corporate affairs minister Nirmala Sitharaman on 17 May, had led to heated debates about its desirability with former Reserve Bank of India governor Raghuram Rajan questioning its utility.
Rajan had said suspending fresh bankruptcy cases was unfortunate as it viewed resolution as a punishment and not as a way of restructuring capital structure and ownership, Mint had reported. #casansaar (Source - LiveMint)
Category : Insolvent Professional | Comments : 0 | Hits : 450
The National Company Law Tribunal (NCLT) on Monday ordered insolvency proceedings against media baron Subhash Chandra on a plea filed by Indiabulls Housing Finance. A two-member Delhi b...
Also Read -
IBBI invites suggestions to simplify, ease & reduce cost of compliance of Regulations notified under IBC
The Insolvency and Bankruptcy Board of India (IBBI) invites suggestions/comments from public and regulated entities, on the Regulations for simplifying, easing and reducing cost of compliance. The ...
Also Read -
Govt considers giving financial creditor status to insurers issuing surety bond during resolution
To make surety bond business more attractive, the government is looking at making relevant changes in the Insolvency and Bankruptcy Code (IBC) to consider insurers as financial creditor in case of def...
Comments