Creditors see 1% recovery in case of personal guarantees

IBC was drafted in a way that it allowed banks and other creditors to invoke the provisions to recover the dues from guarantors, in case the claims were not fully realised through the corporate insolvency resolution process. (Representative Image)

NEW DELHI: Insolvency & Bankruptcy Code (IBC) may have helped recover around 31% of claims in corporate insolvency cases but when it comes to recovering the amount offered as personal guarantees the record is very poor.To begin with, admission itself is taking a lot of time. According to the latest data released by insolvency & Bankruptcy Board of India (IBBI), of 5,186 applications filed by creditors and companies since Dec 19, resolution professionals has been appointed in just around 41%…

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Creditors see 1% recovery in case of personal guarantees

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