The timeline for completion of resolution under the Insolvency and Bankruptcy Code (IBC), which was established in 2016, is 270 days, and can be extended subject to certain conditions.
A total of 45 per cent of the cases under the IBC have ended in liquidation, India Ratings said on the basis of an analysis of data released by the Insolvency and Bankruptcy Board of India (IBBI) for the June quarter.
“The average time taken for a Corporate Insolvency Resolution Process (CIRP) yielding through resolution or liquidation is at a three-year high for all stakeholders,” it said.
The realisation for FCs and Corporate Debtors (CDs) has marginally improved in the first quarter as compared to the year-ago period but it remained lower than FY22 and FY21, the report said.
Operational Creditors (OCs) saw realisation at a three-year high of 17.7 per cent in cases closed through the IBC during the April-June period, it said. Resolution timelines continued to increase for OCs and FCs, with the highest being 635 and 643 days for OCs and FCs, respectively. The resolution numbers for OCs and FCs were 555 and 552, respectively, in FY23, the report said.
However, there has been a marginal improvement in realisations, with OCs seeing the highest realisations as compared to the past three years while for FCs, it has been much lower than in FY22 and FY21, it said.
A total of 49 per cent cases filed before the National Company Law Tribunal (NCLT) in the June quarter were by OCs, up from 43 per cent in the year-ago period.
Denial of responsibility! My Droll is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
