India Allows Extension of Bankruptcy Filings for Three Months
- New proposal to give relief to pandemic-hit borrowers
- Extension may add more strain of bad debts on lenders
Nirmala Sitharaman
Photographer: T. Narayan/BloombergThis article is for subscribers only.
India’s corporate affairs ministry has extended suspension of new bankruptcy filings for three months from Friday, a statement from the ministry said.
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.