Poor IBC recovery calls for process rejig: Crisil
The Hindu
‘Only 5% recoveries in high-value cases’
Only a third of the admitted financial claims of insolvent companies have been recovered since the onset of the bankruptcy process five years ago, a domestic credit rating agency said.
With only ₹2.5 lakh crore in recoveries, there is a need for a ‘stronger push’ to make resolutions under the Insolvency and Bankruptcy Code (IBC) process more effective, Crisil said, admitting that the law has tilted the power equation in favour of creditors from debtors.
“A closer look at the data shows, however, the recovery rate and resolution timelines have a lot more room for improvement. This makes a continuous strengthening of the code and stabilisation of the overall ecosystem imperative,” it said.
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