More than 60 per cent of corporate insolvency resolution processes that achieved closure in July-September 2020 have ended up in liquidation. The data by the Insolvency and Bankruptcy Board of India (IBBI) shows 68 cases ended up in liquidation of the total 112 closed cases during the period.
While a number of cases faced liquidations in the previous quarter too, it was still only one-third of the total cases closed. Liquidations have been on the rise even as initiation of CIRP under the Insolvency and Bankruptcy Code (IBC) has been under suspension till December 2020.
Experts said that this further underlines the lack of investor interest in stressed assets at this point. Earlier the cases coming to IBC had eroded most value and…
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