Mumbai: Credit rating agency Icra estimates that haircuts for operational are not materially different than the haircuts taken by the financial creditors for cases under the Insolvency and Bankruptcy Code (IBC).
This analysis is based on the data for 92 corporate insolvency resolution plans (CIRPs) that have yielded a resolution plan up to 31 March, 2019 under IBC. Icra also found that of these 92 insolvency resolutions, operational creditors would realise about 42% of the total claims of 8,140 crore (haircut of 58%) and financial creditors would realise 44% of the total claims of 1.6 lakh crore.
In absolute terms though, the loss to the financial creditors has been significantly higher compared to the operational creditors,” the rati…
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