Implementing approved resolution plans during the pandemic is turning out to be tricky for corporate India. At least half-a-dozen such plans -- approved by committees of creditors (CoCs) and the National Company Law Tribunals -- are currently under re-negotiation on the pricing front or for relaxation in performance parameters, say experts.
While the government has announced measures to ensure that there is no fresh initiation of pandemic-induced insolvency proceedings over the next six to 12 months, it has so far chosen to remain silent on the implementation challenges faced by the existing resolution applicants. The Insolvency and Bankruptcy Code (IBC), too, does not provide any legislative safeguards for resolution applicants faced with pandemic-like situations, say experts.
“Covid-19 has hurt all