Key Points
Financial creditors recovery from defaulters surged to 36% of admitted claims in FY23 from 23% in the previous fiscal and 17% in FY21, as national company law tribunals (NCLTs) increased sittings with the easing of the Covid-19 pandemic and bidders raised offers amid improving economic prospects...
Data from the Insolvency and Bankruptcy Board of India (IBBI) showed that out of the total admitted claims of Rs 1.42 lakh crore, creditors realised rs 51,425 crore in FY23, compared to Rs 49,208 crore realised from admitted claims of Rs 2.14 lakh crore a year ago...
Though realisations for creditors improved during the fiscal, they were still lower than the 54% realisations seen in FY18 and FY19, the first two years after the law came into force...
But it is unlikely that we may see good realisation in the near future because most accounts now pending resolution have little value in them and even banking asset quality has improved so no new large accounts are coming into insolvency, said a senior banking executive, who did not wish to be identified...
Other accounts which saw completion during the quarter included Jaypee Infratech, which was among the 12 cases directed by the Reserve Bank of India to the NCLT in 2017, chemicals maker JBF Petrochemicals and plastics company Sintex-BAPL which was admitted into the insolvency process in 2020..
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