Key Points
"Though realisation is incidental under the Code, financial creditors recovered 34.3% of their claims which only reflects the extent of value erosion by the time the CDs entered CIRP," said RBI.Agencies..
The bankruptcy code has rescued 72% of the distressed assets since it came into being in 2016, though half of them ended in orders of liquidation, said the Financial Stability Report by the Reserve Bank of India...
Among the closed CIRPs, 21% were closed on appeal, review, or through settlements, 19% were withdrawn, 45% ended in orders for liquidation, and 15% resulted in the approval of resolution plans...
The average time for concluding the 678 CIRPs that yielded resolution plans was 512 days, while CIRPs ending in liquidation took an average of 456 days..
While the IBC has been effective in terms of financial recovery, with financial creditors recovering 34.3% of their claims, realisation in comparison to liquidation value was 169%...
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