Govt raises insolvency threshold to Rs 1 cr to help small cos

New Delhi, Mar 24 () To help small companies facing the threat of defaults due to coronavirus-related lockdown, the government on Tuesday raised the threshold that would trigger insolvency proceedings to Rs 1 crore from current Rs 1 lakh.

This raising of the threshold will help small and medium enterprises, Finance Minister Nirmala Sitharaman said.

Also, the government will consider suspending Sections 7, 9, 10 of the Insolvency and Bankruptcy Code (IBC) for six months if the current economic situation continues beyond April, she said, adding this would help companies being forced into insolvency on default of loans. DP ANZ MRMR