IBC suspension likely to be extended by 3 more months amid Covid crisis

The government is likely to extend the suspension of the bankruptcy code by another three months to prevent companies from being forced into insolvency proceedings due to debt defaults triggered by the Covid-19 crisis.The government had suspended fresh proceedings under the Insolvency and Bankruptcy Code (IBC) for loan defaults on or after March 25, the day the country went into lockdown to contain the pandemic, for six months.