India Allows Extension of Bankruptcy Filings for Three Months

India’s corporate affairs ministry has extended suspension of new bankruptcy filings for three months from Friday, a statement from the ministry said, Bloomberg News reported. Bankruptcy filings, that have been in progress from earlier this year, have been halted to help financially-strapped borrowers hit by the pandemic, stay out of court. The move comes as the government seeks to cushion an economy already contracting at the worst pace in decades from more damage. The move has been challenged by banks, already saddled with one of the worst bad-debt ratios in the world. There have been concerns that any extensions to bankruptcy proceedings could make lenders balk at extending credit to businesses in Asia’s third-largest economy. The nation had already been grappling with a shadow banking crisis that started in 2018 and keeping money flowing to borrowers, which is key to reviving growth. Read more

Location