By the end of September 2022, creditors, mainly banks and financial institutions, had received 2.43 billion rupees under resolution plans approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC). This is in contrast to the total amount of claims made by creditors, which total $7.91 lakh crore and have an estimated liquidation value of $1.35 lakh crore. In other words, according to information accessible with IBBI and revealed in the most recent quarterly newsletter, creditors have received 177.55 percent of the liquidation value. The haircut for creditors was less than 16 percent relative to the estimated 2.14 trillion rupee fair worth of the assets and about 69 percent related to their accepted claims.
On December 1st, 2016, the Corporate Insolvency Resolution Process (CIRP) requirements went into effect. 5,893 CIRPs in all had started as of September 30 of this year. Up to 3,946 of these have been closed. The corporate debtor (CD) was saved in 2,139 out of the closed CIRPs, of which 846 were closed on appeal, review, or settlement; 740 were withdrawn; 553 saw the approval of resolution plans; and 1,807 saw orders for liquidation. 193 out of the 547 CIRPs (193 for which data are available) that produced resolution plans had previously been affiliated with the Board for Industrial and Financial Reconstruction (BIFR) or were inactive.
. The claimants have realized 169.56 percent of liquidation value and 21.27 percent of their recognized claims in these CDs. Debtors are being pushed to settle their debts with creditors as soon as possible owing to the fear of losing control of the company with the implementation of CIRP.
Before their admittance, 23,417 applications for the start of CIRPs with an underlying default of $7.31 lakh crore were settled as of September this year. This is related to the altered behaviour brought about by the Code. KR New Delhi Srivatsa Creditors realized $2.43 billion through resolution proposals that the NCLT approved.
