Stressed Companies

Banks, financial institutions and other creditors of stressed companies have realised Rs 2.43 lakh crore through NCLT-supervised insolvency resolution processes against total claims of Rs 7.91 lakh crore till September 30, 2022. So far 532 CIRPs (Corporate Insolvency Resolution Process) yielded resolution plans, said the quarterly report of the Insolvency and Bankruptcy Board of India (IBBI). "Till September 30, 2022, the creditors have realised Rs 2.43 lakh crore under the resolution plans. " The fair value of the assets available with these CDs, when they entered the CIRP was estimated at Rs 2.14 lakh crore and liquidation value of Rs 1.37 lakh crore against the total claims of the creditors' worth Rs 7.91 lakh crore," it said. The creditors have realised 177.55 per cent of the liquidation value and 84 per cent of the fair value (based on 456 cases where fair value has been estimated), the newsletter said. "The haircut for creditors relative to the fair value of assets was less

In a move that will provide better market-linked solutions for stressed companies, watchdog IBBI has amended its regulations to allow sale of one or more assets of an entity undergoing insolvency resolution process, besides other changes. Also, the Committee of Creditors (CoC) can now examine whether a compromise or an arrangement can be explored for a corporate debtor during the liquidation period. The Insolvency and Bankruptcy Board of India (IBBI) has amended the regulations with the "objective to maximise value in resolution" and they came into effect from September 16. As many as 1,703 Corporate Insolvency Resolution Processes (CIRPs) ended up in liquidation till the end of June this year. The regulator has permitted a resolution professional and the CoC to look for sale of one or more assets of the corporate debtor concerned in cases where there are no resolution plans for the whole business. The Insolvency and Bankruptcy Code (IBC) provides for a market-linked and time-boun

The loans provided under ECLGS 2.0 will have a five-year tenor, with a 12-month moratorium on repayment of principal

The share of debt with loss-making companies was also down to 23 per cent as compared to 28 - 30 per cent pre-Covid-19

Companies battling to get in shape after a nationwide lockdown to contain the coronavirus pandemic devastated the economy have been helped by regulators, but investors are worried. Should they be?

They say ARCs are giving backdoor entry to vulture funds through an effective "benami structure" after taking over debt from banks

The report has identified power, construction, steel, retail and real estate sectors among 26 sectors that need relief

Market experts said the new guidelines provide flexibility to the promoters and promoter group entities to attract investors for their companies

Pricing norms eased, conditional exemption from open offer extended

The IBC has taken a big step in providing a clean slate to buyers of stressed companies

While the share of debt was 41% at the quarter ended March, it is now at 38%