Govt extends suspension of fresh insolvency proceedings
The government on Thursday extended the suspension of fresh insolvency proceedings under the insolvency law by three months till December 25. The six-month period of suspension, which was effective from March 25, was to end on Thursday.
According to a notification issued by the corporate affairs ministry, the suspension of fresh proceedings under the Insolvency and Bankruptcy Code has been extended for a “period of three months from the 25th September, 2020”.
Finance minister Nirmala Sitharaman’s office tweeted that the extension gives companies “breathing time” to recover from financial stress.
“Extension of suspension of sections 7, 9, 10 of the IBC reinforces the government's commitment to protecting businesses,” the tweet said.