Resolution professionals latch on to older cases, new restructuring windows

Over 13,000 IBC applications are currently pending in NCLT, where only matters seen as urgent are being heard

The government’s move to temporarily halt fresh insolvency proceedings has offered some respite to stressed companies but it has created an unexpected problem for resolution professionals: Loss in business.

Many firms, industry experts said, had expanded their insolvency division in the last year with a rising number of Corporate Insolvency Resolution Process (CIRP) applications being filed. “While the big ones will not see much impact, smaller firms will face issues,” said Pavan Kumar Vijay, founder, Corporate Professionals.

The government earlier this month suspended Insolvency and Bankruptcy Code (IBC) provisions that trigger insolvency. A person who did not wish to be named said