SC directive is a big relief for stressed firms with cash flow issues

Cash flows of airlines, hotels, SSIs yet to recover

The Supreme Court’s (SC’s) interim order on Thursday came as a relief to stressed companies with crimped cash flow. The cash flow of several companies from the aviation, hospitality, and steel sectors are still 50-60 per cent below pre-Covid levels, leading to fears they might start defaulting. The Reserve Bank of India has set up a committee to recommend debt restructuring. The central bank will soon come out with a report.

The court’s order came after several industry associations challenged the interest levied on interest on loans that were under moratorium due to the Covid-19 pandemic. The industry has also asked