Promoters go for ‘asset protection trusts’ fearing default Synopsis Many companies have seen profitability crash or even entire business models facing major disruption due to Covid pandemic driven demand slump. The fear is that once the lenders come out of the “moratorium mode”, the defaults will start mounting and bankruptcy would be a step away. Fearing that their businesses will face further stress due to the second Covid wave, a large number of Indian promoters are creating asset protection trusts and transferring their assets to stop lenders and investigating agencies going after these in case of a default. Many companies have seen profitability crash or even entire business models facing major disruption due to Covid pandemic driven demand slump. The fear is that once the lenders