IBC Resolution

Creditors have recovered around Rs 3.55 lakh crore through resolution of 1,068 cases under the insolvency law till September this year, the government said on Monday. In a written reply to the Lok Sabha, Minister of State for Corporate Affairs Harsh Malhotra also said that a total of 1,963 CIRP cases are ongoing and out of them, 1,388 have exceeded the time limit of 270 days. CIRP refers to Corporate Insolvency Resolution Process. The minister emphasised that realisation under the IBC is market driven and dependent on quality of assets at the time of resolution. "A total of 1,068 cases have been resolved under the Insolvency and Bankruptcy Code, 2016 (IBC) leading to a recovery of about Rs 3.55 lakh crore to the creditors since inception of IBC till September 2024," he said. So far, six amendments have been made to the IBC to strengthen the resolution process and to ensure proper implementation of provisions of the law. The Insolvency and Bankruptcy Board of India (IBBI) has made

Banks have had to take a haircut of over two-thirds in the corporate insolvency cases being resolved through the bankruptcy courts, a report said on Wednesday. In over 71 per cent of the cases, the 270-day timeline is getting exceeded, the report by rating agency Icra said, adding that this is resulting in a higher number of liquidation orders as the elongated process erodes value. "'Lenders continue to face steep haircuts or reduction in loan amounts of nearly 72 per cent in Q2 FY2025 as the overall resolution process continues to face material delays emerging from litigations from either promoters or dissenting creditors," the agency's group head for structured finance ratings Abhishek Dafria said. He added that 71 per cent of the ongoing corporate insolvency resolution processes (CIRPs) had exceeded 270 days, post-admission by the NCLT. "The elongated process results in further erosion of the corporate debtor, which has also resulted in a high share (44 per cent) of CIRPs being

IBBI stated that in most insolvency cases initiated by operational creditors, the creditors are more focused on the repayment of money claims than on admission or resolution of the corporate debtor

Lenders have recovered Rs 3.5 lakh crore through resolution of stressed assets under the insolvency process in the last eight years, a period during which NCLT approved 1,000 resolution plans, IBBI Chairperson Ravi Mital said on Tuesday. The Insolvency and Bankruptcy Code (IBC) provides for a market-linked and time-bound resolution of stressed assets. The National Company Law Tribunal (NCLT) and the Insolvency and Bankruptcy Board of India (IBBI) are key institutions in the IBC ecosystem. In the last two years, NCLT has cleared 450 resolution plans. This accounts for 45 per cent of the 1,000 such plans approved in the last eight years, Mital said at a function to mark the eighth foundation day of the IBBI. According to him, Rs 3.5 lakh crore has been recovered directly by lenders, of which Rs 1 lakh crore was in the last two years. Under the IBC, the recovery is about 84 per cent of the assets' fair value, as per official data. Chief Economic Advisor V Anantha Nageswaran said a ..

IBBI Chairperson Ravi Mital on Tuesday asked insolvency professionals to be as transparent as possible during the resolution process as that will help in improving the bids and reduce haircuts. Speaking at a conference organised by the Indian Institute of Insolvency Professionals of ICAI (IIIPI) in the national capital, he said insolvency professionals and insolvency professional entities are the fulcrum of the insolvency system. While highlighting that the insolvency professionals need to be mindful of time and delays, Mital said, "be as transparent as possible during the bidding process. This will improve bids, reduce haircuts and improve image of the IBC ecosystem," according to a release issued by IIIPI. The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the Insolvency and Bankruptcy Code (IBC).

Recovery for financial creditors, however, declined to 27% compared to 36% in FY23

However, it is still taking 679 days on average to conclude the resolution process, as against the standard timeline of 330 days

Paves way for resolution of debt worth Rs 32,700 cr

The admission bench will admit/reject the application within 14 days of receiving it

As of the months of September 2021, September 2022 and September 2023, around 45 per cent of the total cases admitted into insolvency ended in liquidation

The Supreme Court upheld the constitutionality of IBC provisions on Personal Guarantors' Insolvency Resolution, dismissing over 200 petitions which challenged its legal validity

The Corporate Insolvency Resolution Process (CIRP) was initiated against Future Retail by its lender Bank of India (BOI) following loan defaults

The Go First lenders are seeking to recover around 25-30% or Rs 1,600 crore-Rs 1,900 crore of their exposure to the airline

Time period during which airlines incurred these costs is unclear

In May 2023, the NCLT's Mumbai bench refused to entertain the IDBI's plea, stating that it was barred under Section 10A of the Insolvency and Bankruptcy Code (IBC)

Pratt & Whitney on Thursday said it respects the Interim Arbitration ruling of a Singapore court, directing the US-based engine maker to send five engines every month to Go First airlines between August and December, adding that it will comply with the same.The official spokesperson for Pratt & Whitney said, "We look forward to vigorously defending ourselves during the merits proceedings where the business and legal issues will be determined and resolved."The ruling by the Singapore court came brought some respite to the carrier, which found itself in a bankruptcy court after a fiscal slump and funds crunch.The Singapore court issued a seven-point order to the US-based engine."The respondent must take all reasonable steps to release and dispatch to the Claimant, without delay as they become available, five Engines per month immediately after any Engine becomes available and commencing, at the latest, on 1 August 2023 and continuing through 31 December 2023, subject to ...

The Supreme Court has sought a response from the CBI on a plea against a Jharkhand High Court order that a resolution professional appointed under the Insolvency and Bankruptcy Code is a 'public servant' and can be tried under the Prevention of Corruption Act. A SC vacation bench of Justices A S Bopanna and Prashant Kumar Mishra issued the notice to the CBI on a plea challenging the April 5 order of the high court. "Issue notice to the respondent on the Special Leave Petition," the plea said. The top court was hearing a plea filed by Sanjay Kumar Agarwal challenging the Jharkhand High Court order. "The present petition raises a substantial question of law that has far-reaching consequences in various proceedings pending before various courts in the territory of India: whether a resolution professional appointed under Insolvency and Bankruptcy Code, is a public servant as defined under the PC Act, and thus can be subject to proceedings and prosecution under the PC Act," the plea ..

IBBI has also proposed to increase the fee of the AR to be commensurate with the increased duties to double the current levels

It has also granted Go First protection under a moratorium from recovery by lessors and creditors

It has also granted Go First protection under a moratorium from recovery by lessors and creditors