Government Says 43 Corporate Debtors’ Cases Resolved Under Bankruptcy Code

New Delhi:

Authorities has mentioned that 43 massive company debtors, every having complete admitted claims of Rs 2,500 crore and extra had been resolved via the Insolvency and Chapter Code (IBC) until December 31, 2021.

Giving this info in Lok Sabha throughout query hour in response to a question raised by Congress MP Manish Tewari, minister of state for finance Bhagwat Karad mentioned that as per information from the company affairs ministry, as on December 31, 2021, 43 massive company debtors, every with complete admitted claims of Rs 2,500 crore and above, had been resolved via the market pushed company insolvency decision course of (CIRP) below the Insolvency and Chapter Code, 2016.

The minister gave this response when he was requested whether or not heavy haircuts had been doled out to massive corporations reminiscent of Essar, DHFL and Videocon, costing the banking sector hundreds of crores.

“These company debtors owed a complete of Rs 5.44 lakh crore to monetary collectors whereas their liquidation worth was Rs 1.06 lakh crore. Additional, realisable worth for monetary collectors via the permitted decision plans was Rs 1.91 lakh crore, which is 179 per cent of the liquidation worth of those company debtors, and 35 per cent of the admitted claims,” Mr Karad mentioned in his written response to Mr Tewari’s query.

The minister mentioned the matter associated to Videocon has not reached finality and recent bids are being invited, as per the Nationwide Firm Legislation Appellate Tribunal’s order dated January 5, 2022.

Additional, the minister mentioned as on September 30, 2021, ARCs (asset reconstruction corporations) acquired belongings valuing Rs 3.74 lakh crore from banks and monetary establishments, with combination acquisition price of Rs 1.04 lakh crore.

“As per inputs acquired from company affairs ministry, as on December 31, 2021, CIRP is ongoing in respect of 1,699 company debtors, out of which, course of has exceeded the timeline of 180 days in respect of 1,355 company debtors,” Mr Karad added.