The Insolvency and Bankruptcy Code (IBC) has helped rescue 160 companies and its creditors have got back 44 per cent of their claim amounting to 1.6 lakh crore, a top government official said on Friday.
He pointed out that though 44 per cent of recovery may not look very rosy but one should view keeping reality in mind and the present value of the business.
“IBC has rescued 160 companies and recovered Rs 1.6 lakh crore which amounts to 44 per cent of creditors’ claim.
But, also this amount is 210 per cent of their liquidation value,” Insolvency and Bankruptcy Board of India (IBBI) chairman M S Sahoo said.
The creditors have recovered 110 per cent more than their liquidation value, while highlighting the success of IBC since it rolled out in 2016, he said, speaking at ICAI regional conference here.
Sahoo pointed out that early stage resolution will help creditors to get better valuations.
The code, which provides for resolution of stressed assets in market-linked and time-bound manner.
As many as 21,136 applications have been filed under the code.
About 9,653 cases involving a total amount of Rs 3,74,931.30 crore have been disposed of at pre-admission stage of IBC, the government had said recently.
Source: Business Standards, December 20, 2019