Update: March 15, 2022 11:53 p.m. STI
New Delhi [India]Mar 15 (ANI): Financial creditors have realized 221% of liquidation value and 51% of admitted claims through the business insolvency resolution process, the Minister of State for Finance said on Tuesday. ‘Union, Bhagwat Kisanrao Karad.
In a written response to a question from the Rajya Sabha, the Minister noted that, in line with inputs received from the Ministry of Corporate Affairs (MCA), the Corporate Insolvency Resolution Process (CIRP) under the 2016 Code Insolvency and Bankruptcy (IBC), was launched by the banks in the 12 major accounts that were referred by the Reserved Bank of India.
Financial creditors had an outstanding aggregate claim of Rs 3.45 lakh crore against these debtor companies. Of these 12 debtor companies, resolution plans have been approved for eight debtor companies, the CIRP is in progress for two debtor companies and two debtor companies are in the process of being liquidated.
Regarding the resolution and settlement of these accounts, the eight corporate debtors, which were resolved through the market-based CIRP, owed a total of Rs 2.26 lakh crore to financial creditors while their value of liquidation was Rs 0.52 lakh crore, the minister said.
“Furthermore, the realizable value to financial creditors through the approved resolution plans was Rs. 1.16 lakh crore, or 221% of liquidation value and 51% of admitted claims,” Karad added. (ANI)