Creditors realise 221 per cent of liquidation value through insolvency resolution process
New Delhi [India], March 15 (ANI): Financial creditors realised 221 per cent of liquidation value and 51 per cent of admitted claims through the corporate insolvency resolution process, Union Minister of State for Finance Bhagwat Kisanrao Karad said on Tuesday.
ANI
Mar 15, 2022 23:53 IST
New Delhi [India], March 15 (ANI): Financial creditors realised 221 per cent of liquidation value and 51 per cent of admitted claims through the corporate insolvency resolution process, Union Minister of State for Finance Bhagwat Kisanrao Karad said on Tuesday.
In a written reply to a question in the Rajya Sabha, the minister noted that as per inputs received from the Ministry of Corporate Affairs (MCA), the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC), was initiated by banks in the 12 large accounts that were referred by the Reserved Bank of India.
Financial creditors had an aggregate outstanding claim of Rs 3.45 lakh crore against these corporate debtors. Out of these 12 corporate debtors, resolution plans have been approved in respect of eight corporate debtors, CIRP is ongoing in respect of two corporate debtors, and two corporate debtors are undergoing liquidation process.
With regard to resolution and settlement in these accounts, the eight corporate debtors, which were resolved through the market-driven CIRP, owed a total of Rs 2.26 lakh crore to financial creditors while their liquidation value was Rs 0.52 lakh crore, the minister said.
"Further, realisable value for financial creditors through the approved resolution plans was Rs. 1.16 lakh crore, which is 221 per cent of the liquidation value and 51 per cent of the admitted claims," Karad added. (ANI)
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