Revival of 45 Bankrupt Companies will meet 50% of lenders' claims: IBBI Chief

25 Sep
Revival of 45 Bankrupt Companies will meet 50% of lenders' claims: IBBI Chief

About 45 bankrupt companies have been approved for revival under the new Insolvency Law and this will recover about 50 per cent of the total claim of creditors. 

"The recovery from these 45 companies approved for resolution is about 50 per cent of the total claims of the creditors, which is very good," said M.S. Sahoo, Chairperson Insolvency and Bankruptcy Board of India.

About 1,100 companies have been admitted in the Corporate Insolvency Resolution Process (CIRP) since the implementation of the Insolvency and Bankruptcy Code (IBC) in 2016 and the admission of the first company in January 2017, Sahoo added.

"More than 180 companies have been sent for liquidation. Currently, there are about 800 corporates undergoing CIRP and about 100 cases have been closed on appeal or review as they should not have been admitted in the first instance," Sahoo further added.

Recovery in 34 companies that were approved for resolution till June end was about 56 per cent, which was much higher than the liquidation value of these stressed assets. 

As per the data of IBBI, the resolution plans for the 34 companies assure recovery of about 50,000 crore against the total creditors' claim of about 90,000 crore.

As per IBBI data, 136 companies sent for liquidation till June end. "Of the 136 companies sent for liquidation, 110 companies were already either in Board for Industrial and Financial Reconstruction (BIFR) or were non-functional. And, most of these (106) had a resolution value less than the liquidation value," Sahoo said.