During July-September FY25 quarter, as many as 54 corporate insolvency resolution processes (CIRPs) yielded resolution, which took the total plans approved so far to 1068 till September 2024, according to Insolvency and Bankruptcy Board of India. Till September, 2024, the creditors have realised Rs 3.55 lakh crore under the resolution plans.
The fair value and liquidation value of the assets available with these corporate debtors (CDs), when they entered the CIRP, was estimated at Rs 3.38 lakh crore and Rs 2.20 lakh crore, respectively, as against the total claims of the creditors worth Rs 11.44 lakh crore.
This means, the creditors have realised 161.11% of the liquidation value and 86.13% of the fair value. Also, the haircut for creditors relative to the fair value of assets was around 14%, while relative to their admitted claims it was around 69%, till September-end.
In terms of liquidation, during Q2FY25, 79 CIRPs ended in orders for liquidation. Till September 2024, the total CIRPs ending in liquidation stood at 2,630. Of these, final reports have been submitted in 1,113 cases.
There are 1,517 ongoing liquidation processes as of now. Around 78% of the CIRPs ending in liquidation (2035 out of 2610 for which data are available) were earlier with Board for Industrial and Financial Reconstruction BIFR and/or defunct. “The economic value in most of these CDs had almost completely eroded even before they were admitted into CIRP. These CDs had assets, on average, valued at 6.3% of the outstanding debt amount,” said the board.