Financial and Operational creditors have recovered around 48 per cent of the total claims admitted in 88 insolvency cases. The claims total to Rs 1.42 lakh crore under the Insolvency and bankruptcy Code (IBC), Press Trust of India has reported.
Data collected by Insolvency and Bankruptcy Board of India (IBBI) showed that of the total admitted claims the financial creditors sought to recover Rs 1.36 lakh crore while the operational creditors sought Rs 6,469 crore respectively.
Out of this amount, Rs 65,635 crore has been recovered by Financial Creditors and Rs 3,131 crore by Operational Creditors.
In an affidavit released at the instructions of the National Company Law and Appellate Tribunal (NCLAT), IBC claimed that some creditors were able to recover more than 100 per cent of the claims. Of the 88, Eleven Financial Creditors recovered 100 per cent while only six such realisations by the Operational Creditors.
The list had major acquisitions that of TATA Steel taking over of Bhushan Steel and Vedanta of Electrosteel.
The acquisition of TATA allowed financial creditors of Bhushan Steel to recover 63.49 per cent of the total claims of Rs 57,505.05 crore while the operational recovery stood at 80.94 per cent.
With the Vendanta takeover of Electrosteel financial creditors recovered 40.38 per cent of the Rs 13,958 of bad debt while the operational creditors could claim zero per cent.
IBC is the bankruptcy law of India which consolidates the existing framework by creating a single law for insolvency and bankruptcy, and the code is a one-stop solution for resolving insolvencies which previously was a long process and aims to protect the interests of small investors and make the process of doing business less cumbersome.
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