Pause in IBC, internal issues halt takeover of stressed projects

Big developers are in wait-and-watch as leveraged developers have made use of the six-month loan moratorium, effectively avoiding defaults

Cash-rich developers are in a quandary about taking over stressed property projects.

The reason: Opportunities to take over under the Insolvency and Bankruptcy Code (IBC) process have dried up this year after IBC procedures were first suspended for six months, and then by another three months till December 31.

Big developers are waiting for better deals to buy out stressed projects as leveraged developers made use of the six-month moratorium on loan payments, and effectively avoided loan defaults. Many are also conserving cash to tide over the difficult times in which sales have dwindled and cash flows have been severely