The continued suspension of new insolvency proceedings has hit not just recovery for lenders, but also affected small businesses who typically form the bulk of suppliers to many corporates.
Operational creditors are those seeking to recover their dues with respect to goods or services they have provided, while financial creditors are the lenders. The government restricted fresh cases under the Insolvency and Bankruptcy Code (IBC), first for six months till 25 September, and then for three more months till 25 December.
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According to latest data since inception till 30 September, operational creditors formed the majority of those dragging companies to National Company Law Tribunal (N…
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