The suspension of IBC will necessitate a creative evolution of the resolution landscape- deploying existing legal tools as well as fashioning new ones to resolve and restructure intractable debt David Skeel, Professor at University of Pennsylvania writing in the Wall Street Journal spoke of the burgeoning rise in bankruptcies that are likely to follow in the wake of COVID 19 and The Great Lockdown and the need “Flatten the Bankruptcy Curve".
A well-studied consequence of excessive insolvency proceedings is premature liquidations, more retrenchment and fewer investments- which is borne out by India’s experience and these effects may be further amplified on account of the endemic stress.