Two years after implementation of the Insolvency and Bankruptcy Code 2016 (IBC), creditors have recovered Rs 1.42 lakh crore worth dues so far from the companies undergoing resolution proceedings, reveals the official data.
According to data collected by the Insolvency and Bankruptcy Board of India (IBBI), a little over Rs 1.42 lakh crore were admitted in 88 cases under the IBC till February 28.
The IBBI provided the figures in an affidavit submitted to the National Company Law Appellate Tribunal (NCLAT) last week.
Of the total admitted claims, financial creditors sought to recover dues worth Rs 1.36 lakh crore and operational creditors Rs 6,469 crore.
In terms of percentage, financial creditors recovered 48.24 per cent of their admitted claims and operational creditors got 48.41 per cent of their claims.
As per IBBI, the figures are with respect to 88 cases, including those whose resolution has been completed, during the time till February 28.
On March 27, the NCLAT directed the IBBI to file an affidavit with details about the average percentage of distribution of realised amounts between financial creditors and operational creditors subsequent to insolvency resolution process. According to the affidavit filed by IBBI, the realised amount was more than 100 per cent in some cases.
In the 88 cases, financial creditors got 100 per cent realisation of admitted claims under 11 resolution plans, while operational creditors got full realisation only in six cases. In three cases, financial creditors got more than 100 per cent realisation of admitted claims.
Among the 88 cases were big-ticket takeovers, including Tata Steel acquiring Bhushan Steel and Vedanta’s acquisition of Electrosteel.
In the Bhushan Steel matter, total admitted claims of operational and financial creditors amounted to Rs 57,505.05 crore. Of this, financial creditors received 63.49 per cent of claims, while the operational creditors’ realisation stood at 80.94 per cent.
With regard to Electrosteel, total admitted claims for both financial and operational creditors were Rs 13,958 crore. During this resolution, in which the Vedanta Group got control of the company, financial creditors got 40.38 per cent of admitted claims, while the operational creditors’ share was nil.
In case of Monnet Ispat & Energy, the total admitted claims were Rs 11,478.08 crore, of which financial creditors got 26.26 per cent and operational creditors 5.40 per cent.