Parliament approves changes to IBC to protect Kovid-stressed companies from bankruptcy

Parliament approves changes to IBC to protect Kovid-stressed companies from bankruptcy

New Delhi: Parliament on Monday approved the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020, under which new bankruptcy proceedings will not be initiated for at least six months starting on March 25 in view of the coronavirus epidemic.
Responding to the debate in the Lok Sabha on the Bill, Finance Minister Nirmala Sitharaman said that the amendments would provide relief to companies struggling with the impact of the coronovirus epidemic.
The bill seeking to change the ordinance was later approved by the Lok Sabha. The Rajya Sabha has already approved the bill on Saturday.
The bill states that a default on repayment from March 25, the day the nationwide lockout began to curb the spread of coronovirus, would not be considered to begin bankruptcy proceedings for at least six months.

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