The Insolvency and Bankruptcy Code (IBC), which has now turned five, has helped rescue as many as 396 companies till June 30 this year this is from the 4,541 corporate insolvency cases that had commenced between December 1, 2016, and June 30, 2021, official data showed.
A positive surprise
Rescue essentially means the resolution plans for these 396 companies have been approved. What has, however, come as a positive surprise is that the realisation from the resolution plan was as high as 174 per cent of the liquidation value, implying that excess recovery of 74 was a clear bonus from the code, say IBC observers. Any other option of recovery or liquidation would have recovered at best 100 minus the cost of recovery/liquidation, while the…
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