IBBI chairman M S Sahoo defends 94% haircut for stressed firm

The resolution plan allowed the acquirer, Synergies Castings, to pay Rs 0.54 bn to its creditors. The total dues were over Rs 9 bn

The Insolvency and Bankruptcy Board of India (IBBI) Chairman M S Sahoo defended the large haircut lenders had to take in the case of Synergies Dooray. He said that was the best option.  Lenders took a haircut of 94 per cent, stirring a controversy. 

At an event of the Institute of Chartered Accountants of India on Wednesday, Sahoo said, “The company’s net worth went into negative when it was referred to the BIFR (the Board of Industrial and Financial Restructuring). Liquidation would have fetched the lenders much less than what they got due to the resolution.” If the assets of the