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India Bankruptcies Seen Piling on Virus Adding to Distress (1)

March 25, 2020, 5:57 AM

Bankruptcies in India are expected to climb as the coronavirus outbreak hits distressed companies harder in Asia’s third-largest economy, according to a report by one of the country’s top law firms.

Companies with high levels of debt are facing double whammy as existing credit lines are withdrawn and customer payments are delayed at a time when they need to pay suppliers, Cyril Amarchand Mangaldas, a Mumbai-based law firm, said in a report. Such companies may need to renegotiate terms with the lenders as well as provide additional comfort to them if securities already provided are inadequate.

“Companies may be forced...

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