Govt proposes extending suspension of new bankruptcy filings: Report

India’s corporate affairs ministry is proposing to extend a suspension of new bankruptcy filings that has been in place since earlier this year, people familiar with the matter said.

The proposal is to extend the halt on new bankruptcy cases for another six months past its currently scheduled ending point this week. It must get final approval from Finance and Corporate Affairs Minister Nirmala Sitharaman, according to the people, who asked not to be identified because the details are private.

The suspension has helped financially strapped borrowers hit by the pandemic stay out of court, as the government seeks to cushion an