Ushering in significant behavioural changes, the insolvency law has redefined the debtor-creditor relationship with more than 80 per cent of the corporate debtors getting resolved before official announcement of resolution process till September 2020, according to the Economic Survey.
The Insolvency and Bankruptcy Code (IBC) has rescued 308 corporate debtors as on December 2020 through resolution plans and they had Rs 4.99 lakh crore to creditors.
“However, the realisable value of the assets available with them, when they entered the CIRP (Corporate Insolvency Resolution Process), was only Rs 1.03 lakh crore. Under the Code, the creditors recovered Rs 1.99 lakh crore, which is more than 193 per cent of the realisable value of the…
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