New Delhi: In the December quarter, 195 businesses were admitted to various benches of the National Company Law Tribunal (NCLT) for bankruptcy resolution, taking the total cases that ended up in courts for defense so far to 4,946, according to an official. has been moved. Update from Insolvency and Bankruptcy Board of India (IBBI).
Statistics show that around 200 bankruptcy cases are being added to the tribunal, of which about 50 are being closed every quarter, gradually increasing the burden on the tribunal. The data also shows that while the number of cases to be liquidated is relatively high, these companies have very few assets, while the cases that are being saved, although a relatively small number, have substantial assets, which can reinvigorate the economy. : Getting employed.
Of the total cases that ended up in tribunals, 3,247 have been closed by various means including liquidation, resolution and settlement or withdrawal at the end of December. Of all closed cases, in just over 14%, the bankruptcy resolution plan was approved, while in about 47% of cases, liquidation was ordered, the figures show.
At the end of December, there are 1,699 bankruptcy cases pending with the tribunal, of which 73% have passed for more than 270 days, the data showed. Most of the cases that end up in tribunals and are closed, resolved or ended in the manufacturing and real estate sectors, indicate the stress facing these industries.
Data for the December quarter shows that 457 cases have been saved so far under the Insolvency and Bankruptcy Code (IBC), of which a third were in deep distress. The salvaged businesses had assets 1.5 trillion, whereas only assets in 1,514 cases referred for liquidation were 55,000 crore when he was admitted. “Thus, in terms of value, 73 per cent of the stressed assets were salvaged,” IBBI said in the latest update. According to industry executives, businesses with a strong asset base find it easier to attract investors and plan a turnaround under the IBC.
Most bankruptcy cases are triggered by operational creditors such as vendors, while the rest are triggered by financial creditors and in some cases, the business initiates the process voluntarily. About half of cases initiated by financial creditors end in liquidation, while only a small proportion of cases initiated by operational creditors end in liquidation. Three out of four cases initiated by the defaulting company end up in liquidation, according to the data.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!