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Flattening the bankruptcy curve: Why IBC cases may surge post-lockdown

Shroff is in favour of introducing a new chapter to the Insolvency and Bankruptcy Code (IBC) with temporary provisions

Illustration: Binay Sinha
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illustration: Binay Sinha

Sudipto Dey
Two American professors, Kenneth Ayotte and David Skeel, recently expounded in an opinion piece in Wall Street Journal why there is a need to flatten the bankruptcy curve as businesses reel from the aftereffects of the pandemic. A surge in pandemic-triggered insolvency and bankruptcy cases are expected in India in the post-lockdown period. Experts, however, feel just suspending initiation of new cases for a certain period is not enough to safeguard the IBC framework from the onslaught of pandemic-related cases.

“Unless there is activity and effort to revive the corporate debtor, the problem will be aggravated by the end of

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