India Entry & Business Startup Consultings

Corona Virus will kill more of the companies than kill people: Companies going bankrupt

The real global emergency is compaies and industries getting bankrupt. Though human lives are more precious and they are of grave concern.But we must not forget that the food, economy, daily needs, and everything for survival will be from the market, the companies and different industries. Corona Virus or rather the panic because of Corona Virus has greater economic danger than the health risk, when compared in actual result. The result that the unemployment rate has risen due to people being sacked from the work, due to failure of project resultant of the spread of corona virus is one major distress. The second one is where the companies are going bankrupt, there is no generation of work in the global economies. Corona Virus will and has been affecting every sector and every person in some way or the other. The financials have been swept off from the market. There is disruption in the supply chain, leading to lower cash flow and the companies facing financial distress to face it even more. There is overall hit in the industries. Mergers and acquisition, FDI and such expansions are al at halt. There seems to be delay in projects or cancellation of turn-around plans. The fall in the sensex is the first evidence to all of this. The future sector, because of Covid- 19, that can bring boost is only insolvency. The Insolvency law comes to rescue.

 

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