Insta
Worli skyline as seen from Bandra (Image by Yogendra174)<br>
Creditors of companies that have been shortlisted for winding up proceedings are staring at a haircut of almost 92 per cent, reports Financial Express. Among the creditors are banks which have lent money to over 136 stressed firms, which are facing liquidation proceedings under the Insolvency and Bankruptcy Code. These details have surfaced as per data issued by the Insolvency and Bankruptcy Board of India (IBBI) for the last quarter ending June 2018.
The liquidation value of these companies has been pegged at Rs 4,817 crore, while the total admitted claims of creditors stand at Rs 57,121 crore. The admitted debt involving all the 136 stressed firms stood at Rs 57,378 crore, showed the IBC data, according to resolution professionals.
On the contrary, creditors were able to recover Rs 49,783 crore, which amounts to 56 per cent of their admitted claims, from 32 stressed companies whose insolvency plans have been approved by the National Company Law Tribunal by June-end.
Speaking to media, IBBI chairman, M S Sahoo, said, “The best use of the IBC code is its absolute disuse. But the Code, which is now in force, has become a great deterrent for fraudulent businessmen as they are now wary of unethical practices.”
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest