Government says 43 business debtor cases resolved under bankruptcy code
The government said 43 large corporate debtors, each with total admitted claims of Rs 2,500 crore and above, have been resolved through the Insolvency and Bankruptcy Code (IBC) till December 31, 2021.
Giving this information to Lok Sabha during Question Time in response to a question raised by Congressman Manish Tewari, State Minister for Finance Bhagwat Karad said that according to data from the Ministry of Commercial Affairs, as of 31 December 2021, 43 large corporate debtors, each with total admitted claims of Rs 2,500 crore and above, have been resolved through the market-based Corporate Insolvency Resolution Process (CIRP) under the Code of the insolvency and bankruptcy of 2016.
The minister gave this answer when asked if hefty haircuts had been given to big companies such as Essar, DHFL and Videocon costing the banking sector thousands of crores.
“These corporate debtors owed a total of Rs 5.44 lakh crore to financial creditors while their liquidation value was Rs 1.06 lakh crore. Further, the realizable value to financial creditors through the approved resolution plans was Rs 1.91 lakh crore, or 179% of the liquidation value of these debtor companies and 35% of the admitted claims,” Mr. Karad said in his written response to Mr. Tewari’s question.
The Minister said the Videocon case is not final and new offers are being sought, pursuant to the National Company Law Appellate Tribunal order dated January 5, 2022.
Further, the Minister said that on September 30, 2021, ARCs (Asset Reconstruction Companies) had acquired assets worth Rs 3.74 lakh crore from banks and financial institutions, with a cost aggregate acquisition cost of Rs 1.04 lakh crore.
“According to information received from the Ministry of Corporate Affairs, as of December 31, 2021, the CIRP is in progress for 1,699 debtor companies, the process of which has exceeded the 180-day deadline for 1,355 debtor companies,” Karad added. .