The Insolvency and Bankruptcy Board of India (IBBI) has introduced significant reforms to enhance liquidation outcomes under the Insolvency and Bankruptcy Code (IBC). With more companies being successfully resolved and a decline in liquidations, the regulator is focusing on improving realisation for claimants and streamlining the liquidation process.
IBBI Chairman Ravi Mital, in the board’s quarterly newsletter, highlighted a major shift in the liquidation trends under the IBC. In 2017-18, for every company (Corporate Debtor or CD) resolved, five entered liquidation. However, by 2024-25, this ratio has improved significantly, with only 1.3 companies going into liquidation per resolution.
While the trend is encouraging,…
