Key Points
Creditors recovery from defaulters under the Insolvency and Bankruptcy Code (IBC) dropped to almost 26% of their admitted claims in the December quarter from 33% in the previous three months, showed the latest data compiled by the insolvency regulator...
About two dozen of these rescued firms saw the resolution processes stretching beyond four years, well beyond the stipulated time frame of 270 days, suggesting erosion of the stressed asset value...
The recovery, however, was 74.7% of the fair value of the stressed companies when they were admitted for resolution and 128.6% of the liquidation value of these companies, according to the Insolvency and Bankruptcy Board of India data...
The cumulative recovery since the insolvency regime came into force in late 2016 stood at Rs 3.21 lakh crore, or 31.9% of the claims that were admitted by the adjudicating authority relating to the 891 stressed firms...
Experts, however, have advised against judging the IBCs performance based on the recovery rate for any one quarter, arguing that the law is still the best tool for bad debt resolution..
