The data released by the insolvency and bankruptcy board of India shows that financial creditors have recovered 32.95 per cent of their claims in 553 corporate insolvency processes that ended up getting resolved, till September 2022. The IBBI said that this only reflects the extent of value erosion by the time the corporate debtor entered the corporate insolvency resolution process. “Yet it is the highest among all options available to creditors for recovery. Resolution plans on average are yielding 84 per cent of fair value of the corporate debtors,” the latest IBBI newsletter said.
The insolvency regulator also said that around 23,417 till September 2022 were resolved even before admission into the corporate insolvency resolution process. These companies had an