INSUBCONTINENT EXCLUSIVE:
insolvency process and its outcomes as "super success", the Ministry of Corporate Affairs sees a total recovery of Rs 2.8 lakh crore through
resolutions with the settlement of two key accounts."The 100 cases that have been settled through resolution accounts, Rs 1.8 lakh crore
have been netted which is not a small amount and the accounts sitting on margin (Bhushan Steel and Power Essar Steel), another Rs 1 lakh
crore along with some other mid-sized resolutions can come, so Rs 2.8 lakh crore out of Rs 10 lakh crore of NPA that time is not a small
amount, IBC is a super success," said Ministry of Corporate Affairs senior officials on the insolvency processesIn case of Essar Steel, the
Committee of Creditors (CoC) has approved the resolution process but the process got stuck after operational creditor Standard Chartered
moved the NCLAT for a higher share from the funds
The debt-ridden steel firm had Rs 42,000 crore coming from the resolution plan of global steel major ArcelorMittal.JSW Steel had revised its
offer for Bhushan Power Steel from Rs 11,000 crore to Rs 18,000 crore and later to over Rs 19,000 crore which the CoC had approved.And it
is not just resolution process-led recoveries, said the official, adding that the pre-resolution processes have also yielded results in
6,500 cases netting Rs 3 lakh crore on dead assets."6,500 cases settled involving claims of close to Rs 3 lakh crore where they have been
have settled before admission
And now after 12 (A) has been introduced, another 100 cases which are at stages of 90 per cent CoC approval are moving towards out of court
Both (in and outside resolutions and NCLT) are happening
About 500 cases have got settled through the court process and 6,500 cases settled even before admission," said the officials.MCA officials
dismissed the notion of high haircuts through resolution process
They said: "It (IBC) is super success
There should not be any brouhaha over haircuts
Will anybody pay more than what is the value Suppose an asset is used for 20 years, there is nothing more to it, there is a Rs 50,000 crore
loan, liquidation value is Rs 1,000 crore, so you get (the creditors) Rs 1,000 crore only.""Wherever a resolution has taken place, creditors
are getting 200% of the liquidation value
So definitely value maximisation is the context, demand and supply will fix the value", the officials said.Get the latest election news,
live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections
Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general
Election results will be out on May 23.
