Lenders to take 56% haircut in the dirty dozen companies under IBC process

Banks to get back around Rs 1,146 bn against Rs 2,564 bn debt

Indian lenders will take a 56 per cent haircut on loans worth Rs 2.65 trillion to the 12 companies identified for resolution under the Insolvency and Bankruptcy Code, 2016, by the Reserve Bank of India (RBI) in June 2017. 

Considering the offers received till now, lenders would be able to recover Rs 1.15 trillion from bidders. Some of the twelve cases are still under litigation. Lenders of Alok Industries would take a the hit of 77 per cent, the maximum among all cases, on their Rs 220-billion debt. Reliance Industries has offered Rs 50 billion for the company.

The lenders