Nearly 70% of stressed SMEs face liquidation

Around 70 per cent of small and medium enterprises (SMEs) undergoing insolvency proceedings face liquidation, as their promoters are the only ones presenting resolution plans. The recent ordinance amending the Insolvency and Bankruptcy Code (IBC) virtually debars promoters from bidding for their stressed assets.

Experts said at least 200 of the 300-odd SMEs would have to face liquidation. REI Agro, Hind Motors, VNR Infrastructure, and Blossoms Oils and Fats were recently pushed into liquidation as no third-party resolution plan was submitted, insolvency professionals said. 

Some other companies are also nearing liquidation as no third-party resolution plans have come their way.