For the first time in six years, financial creditors beat operational creditors in invoking insolvency proceedings under the bankruptcy law in the last fiscal year.
The data compiled by the Insolvency and Bankruptcy Board of India (IBBI) showed that 650 cases of corporate insolvency resolution process (CIRP) were initiated by financial creditors in FY23, against 535 by operational creditors and 70 by the corporate debtors themselves. The Insolvency and Bankruptcy Code (IBC) came into being in FY17.
Experts attribute the surge in the last fiscal to subdued filings by financial creditors in the previous two years (FY21 and FY22) in the aftermath of the pandemic.
The latest numbers also suggest financial creditors faith in the IBC hasnt quite …
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