Total number of resolution plans approved as on December 31 stood at 891, much higher than 682 approved till FY23-end, quarterly newsletter issued by the Insolvency and Bankruptcy Board of India (IBBI) said on Monday.
This means, 209 resolution plans have been approved so far in FY24, which is higher than any other previous years. Earlier in October, IBBI Chairman Ravi Mittal had said that the number may reach 300 in the current fiscal. Last year, the plans approved were over 180.
The newsletter, however, said that the average time taken for the closure of the CIRP as on December 31 was 671 days, far higher than 330 days mandated under the IBC.
Further, the newsletter noted that the creditors have realised Rs 3.21 trillion from resolutions of stressed assets under the Corporate Insolvency Resolution Process (CIRP), till December 31,
The fair value and liquidation value of the assets, while entering the CIRP, was estimated at Rs 2.97 trillion and Rs 1.9 trillion, respectively, as against the total claims of creditors worth Rs 10.07 trillion.
“The creditors have realised 168.64% of the liquidation value and 86.58% of the fair value,” the IBBI said, while adding that the haircut for creditors relative to fair value of assets was less than 14%.