Covid-19 clouds IBC resolution, applicants seek payment schedule relaxation

The Covid-19 pandemic is prompting successful resolution applicants to seek relaxation in the payment schedule. Resolution applicants of at least two corporate debtors from the Reserve Bank of India’s (RBI’s) first list of non-performing assets (NPAs) — Bhushan Power & Steel (BPSL) and Amtek Auto — asked for flexibility in the payment schedule in recent months.

In June, Deccan Value Investors (DVI), which won Amtek Auto, filed an application with the Supreme Court, asking for an extension of time to discuss terms with the committee of creditors (CoC) and assess the impact of Covid-19. The application was, however, dismissed by