Financial creditors have recovered as much as 51% of their authorized claims in 8 of the 12 major cases recommended by the Reserve Bank of India for resolution under the Insolvency and Bankruptcy Code (IBC), parliament was informed on Wednesday. These 12 companies alone owed their financial creditors a whopping Rs 3.45 trillion.
The recovery took place in 2017. The corporate insolvency resolution process is still underway in the event that two stressed-out companies (Era Infra Engineering and Jaypee Infratech) and two others (Lanco Infratech and ABG Shipyard) are liquidated, Finance Minister Bhagwat Karad said in a written reply filed in the Rajya Sabha.
The eight major companies that witnessed a resolution owed a total of Rs 2.26 trillion to financial creditors while their liquidation value was only Rs 52,000 crore, Karad said. These are Bhushan Steel, Bhushan Power & Steel, Electrosteel, Essar Steel, Jyoti Structures, Monnet Ispat & Energy, Amtek Auto and Alok Industries.
“Furthermore, the recoverable amount for financial creditors through the approved resolution plans was Rs 1.16 trillion, which is 221% of the liquidation value and 51% of the acknowledged claims,” he said.
This post RBI Recommended Cases: Financial Creditors Reclaim 51% in Eight Major IBC Cases was original published at “https://www.financialexpress.com/industry/cases-recommended-by-rbi-financial-creditors-recovered-51-in-eight-large-ibc-cases/2463470/”