A majority of the cases closed under the IBC has ended up in liquidation. With paltry realisations, about INR2.5 lakh crore of claims look set to go up in smoke. ET Prime distils latest data on liquidations from the regulator in five graphics.
(From left) Lagadapati Madhusudhan Rao, chairman, and Lagadapati Rajagopal, principal shareholder, Lanco Infratech. The company received the highest number of resolution plans under the Insolvency and Bankruptcy Code; courtesy of Getty Images and BCCL
The Insolvency and Bankruptcy Code (IBC) is seen as a landmark reform which made debt recovery a “creditor-in-control” process instead of a “debtor-in-possession” affair. The law was conceived with the primary objective of resuscitating sick companies. Thus, the goal has been to return stressed assets back to productive economic activity, if possible. Ideally, a resolution is preferred to liquidation,
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via IBC unable to revive most stressed companies as liquidations eclipse resolutions – ET Prime
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