Fresh changes to the insolvency code removed the moratorium hurdle that lessors faced in taking back control of aircraft from bankrupt airlines.
Transactions, arrangements, or agreements related to aircraft, aircraft engines, airframes, and helicopters will be exempt from the moratorium under the new amendment to the Insolvency and Bankruptcy Code, 2016, according to a government notification.
Under IBC in India, a “moratorium” refers to a legally mandated period during which creditors are prohibited from taking any legal action to recover their debts from a debtor undergoing a corporate insolvency resolution process.
If this amendment is implemented retrospectively, it would affect the moratorium declared in the insolvency case of Go …
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