Only 17% yielded a resolution plan with the remaining cases withdrawn post National Company Law Tribunal (NCLT) admission as on March 31, and liquidation for 960 corporate debtors were completed where creditors realised only 4% of their total admitted claims under the Insolvency and Bankruptcy Code (IBC), ICRA said in a study.
The NCLT approved a record 269 resolution plans under the IBC in FY24, surpassing FY23 record of 189 cases, but the rise in average duration of the resolution process has caused worries, ICRA said.
Creditor claims of 1.7 lakh crore were resolved through resolution plan approvals in FY24 against 1.5 lakh crore in FY23 and haircut by lenders rose to 73% from 64%, it added.
Average duration to close Corporate Insolven…
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