Resolution plans under IBC have yielded 200% of liquidation value: IBBI chairperson – Livemint
NEW DELHI: Resolution plans under IBC have yielded 200% of liquidation value for creditors in addition to rescuing viable firms, IBBI Chairperson M S Sahoo has said.
“They are realising, on an average, 45 per cent of their claims through resolutions plans under the Corporate Insolvency Resolution Process (CIRP), which takes on average 300 days and entails a cost on average of 0.5%.
“This is significantly better as compared to the previous regime which yielded a recovery of 25% for creditors through a process which took about five years and entailed a cost of 9%,” Sahoo was quoted as saying in a Ficci statement.
Addressing a conference on Insolvency and Bankruptcy Code (IBC) at Hong Kong on Thursday, he observed that “in addition to rescu…