MUMBAI: Investors who have bid for assets under the Insolvency and Bankruptcy Code (IBC) are expected to reassess their offers as cash flow projections have gone awry amid the covid-19 pandemic and the ensuing nationwide lockdown, experts said.
The Insolvency and Bankruptcy Board of India (IBBI) has already said the period of lockdown imposed by the government will not be reckoned in the resolution timeline.
The lockdown has been in force since 25 March and ends on 18 May, if not extended further. Karan Mitroo, partner at law firm Luthra & Luthra said, the entire thought process of investors has changed due to covid-19 and investors are trying to assess its potential impact on businesses. “There is a likelihood of resolution applicants,