Government Says 43 Corporate Debtors' Cases Resolved Under Bankruptcy Code

Government has said that 43 large corporate debtors, each having total admitted claims of Rs 2,500 crore and more were resolved through the Insolvency and Bankruptcy Code (IBC) till December 31, 2021..Giving this information in Lok Sabha during question hour in response to a query raised by Congress MP Manish Tewari, minister of state for finance Bhagwat Karad said that as per data from the corporate affairs ministry, as on December 31, 2021, 43 large corporate debtors, each with total admitted claims of Rs 2,500 crore and above, were resolved through the market driven corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016..The minister gave this response when he was asked whether heavy haircuts were doled out to large companies such as Essar, DHFL and Videocon, costing the banking sector thousands of crores.."These corporate debtors owed a total of Rs 5.44 lakh crore to financial creditors while their liquidation value was Rs 1.06 lakh crore. Further, realisable value for financial creditors through the approved resolution plans was Rs 1.91 lakh crore, which is 179 per cent of the liquidation value of these corporate debtors, and 35 per cent of the admitted claims," Mr Karad said in his written response to Mr Tewari's question..The minister said the matter related to Videocon has not reached finality and fresh bids are being invited, as per the National Company Law Appellate Tribunal's order dated January 5, 2022..Further, the minister said as on September 30, 2021, ARCs (asset reconstruction companies) acquired assets valuing Rs 3.74 lakh crore from banks and financial institutions, with aggregate acquisition cost of Rs 1.04 lakh crore.."As per inputs received from corporate affairs ministry, as on December 31, 2021, CIRP is ongoing in respect of 1,699 corporate debtors, out of which, process has exceeded the timeline of 180 days in respect of 1,355 corporate debtors," Mr Karad added.

Government Says 43 Corporate Debtors' Cases Resolved Under Bankruptcy Code

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