INSUBCONTINENT EXCLUSIVE:
The resolution of 94 stressed assets achieved around 43 per cent debt recovery.The resolution of 94 stressed assets achieved around 43 per
cent debt recovery as of March 31, 2019, amounting to Rs 75,000 crore since the inception of the Insolvency and Bankruptcy Code (IBC) in
2016, a report said.The total recovery as of March-end stood at Rs 75,000 crore, against the total claim of Rs 1.75 lakh crore by financial
creditors, the joint-report by Assocham and Crisil said, adding that the asset resolution framework in the country is still a "work in
progress".The report, however, termed the recovery rate of 43 per cent "respectable"
It noted that, had the 94 cases undergone the liquidation process, the recovery rate for financial creditors would have been 22 per cent,
even lower than the recovery rate through normal resolution process."With a respectable recovery rate of 43 per cent, resolution for 94
stressed assets has been reached for Rs 75,000 crore as on March 31, 2019 out of Rs 1,75,000 crore total claim of financial creditors
admitted under the Corporate Insolvency Resolution Process (CIRP) approved by the National Company Law Tribunal (NCLT)," said that report
titled, Strengthening the code.As per the report, the average resolution timeline for the resolved 94 cases was 324 days against the
stipulated insolvency resolution timeline of 270 days.As of March 31, 2019, there were 1,143 cases outstanding under CIRP, of which
resolution in 32 per cent of the cases was pending for more than 270 days, it added
It highlighted that there are a few big-ticket accounts for which resolution has not been finalised for over 400 days.The report suggested
the improvement of the infrastructure of NCLT and NCLAT and digitisation of both these platforms
It said that the Committee of Creditors (CoC) must work dynamically with resolution professionals to revive the company and should be better
equipped through various training programmes to handle professional challenges."To maximise value and stakeholders' interest the IBC
framework for liquidation under a 'going concern' basis needs to be explored further and should be followed in true spirit," it
said.According to the report, an active secondary market and funding from banks could foster entrepreneurial interest, helping in faster
redeployment of these assets and ensuring better price discovery.Get the latest election news, live updates and election schedule for Lok
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