New Delhi: Stressed companies ending up with liquidation orders under the insolvency law, including large ones, have had assets worth less than 5% of the amount they owe to their lenders, showed the bankruptcy regulator‘s data.This brings to the fore the question of due diligence by banks while lending, on top of value erosion caused by late filing, admission of insolvency cases and eventual liquidation, analysts said.
The data showed that as of September, 2,630 liquidation candidates together owed ₹9.51 lakh crore to creditors but they had assets worth only ₹45,000 crore on the ground. These companies included 211 large ones, each of which had dues of at least ₹1,000 crore.
The data covers the bankrupt companies that were ordered…