Insolvency and Bankruptcy Code

Insolvency and Bankruptcy Code News

Resolution of steel companies under IBC yields higher recovery

In total 94 cases that were successfully resolved under the IBC till March-end 2019, 16 steel companies accounting for over half of the stressed debt yielded recovery of 53 per cent and haircut of 47 per cent.

Banking Stress: IBC amendments to usher in crossborder insolvency resolution

A panel by Ministry of Corporate Affairs had suggested adopting the United Nations Commission on International Trade Laws on cross-border insolvency.

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IBC hits and misses

Time taken for resolution process falls, but continues to exceed prescribed limits.

Banking sector gross NPA falls as IBC helps in better recovery

Recovery through the IBC was Rs 70,000 crore in fiscal 2019 – or twice the Rs 35,500 crore recovered through other resolution mechanisms such as the Debt Recovery Tribunal, Crisil said.

Lenders’ differences, legal challenges behind delay in resolutions under IBC

The IBC requires a corporate insolvency resolution process (CIRP) to be completed in 180 days, which can be extended by another 90 days to a maximum of 270 days.

‘Banks expected to realise Rs 80K crore from IBC in FY20’

The higher realisation in FY2020 would be driven by the expected conclusion of the corporate insolvency resolution process (CIRP) of two large accounts, Essar Steel Ltd and Bhushan Steel and Power Ltd, according to ICRA Ratings.

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Resolution plans yielded 200% of liquidation value for creditors

The average time taken for resolution is still higher than the 270 days stipulated under the IBC, mainly due to litigations.

Govt seeks comments from stakeholders on ‘pre-packaged’ insolvency resolution

In March this year, the government had reconstituted the Insolvency Law Committee as a standing committee, chaired by MCA Secretary Injeti Srinivas, to analyse the functioning and implementation of IBC.

Centre plans changes in IBC law to prevent frivolous bids

The government may also blacklist such companies and prevent them from making future bids. Such blacklisted bidders can be barred at the request for proposal stage itself.

FE best banks: ‘Don’t allow litigation to kill Insolvency and Bankruptcy Code’s spirit’

A recent central bank report had suggested that the recovery through the IBC was more than three times of that via other routes, including Board of Industrial and Financial Reconstruction (BIFR).

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