Indicating the poor risk management practices of lenders, corporates which ended up in liquidation under the Insolvency and Bankruptcy Code (IBC), reported just 5 per cent of assets under their fold against the claims made by various debtors. On the other hand, realisation by claimants from successful resolution plans was 32.84 per cent, showing a huge haircut on the part of claimants, including lenders.
Of 2,249 corporate debtors (CDs) which ended up with orders for liquidation as of September 2023, 187 had admitted claims of more than Rs 1,000 crore with an aggregate claim of Rs 843,000 crore. However, they had assets on the ground valued only at just Rs 43,000 crore, according to Insolvency and Bankruptcy Board of India (IBBI).
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