394 insolvency cases resolved; financial creditors realize 36% of their claims

As many as 394 cases of the insolvency of companies have been resolved with the financial creditors realizing 36 per cent of their claims.

Till June 30 this year, 4,540 companies were admitted into the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016 (IBC). This was stated by Minister of State for Corporate Affairs Rao Inderjit Singh in a written reply to a question in Rajya Sabha today.

Giving details on the resolution status, the Minister stated that 394 companies were resolved till June 30 wherein financial creditors (FCs), including financial institutions, had total claims amounting to Rs 6.8 lakh crore. Out of this, Rs 2.45 lakh crore have been realized, which is 36 per cent of their claims.

The Minister further stated that the insolvency resolution process of the corporate debtor (CD) is market driven and the outcome depends on market forces, which varies from case to case and sector to sector. The value realized by creditors depends on the available assets at the stage of admission of case under the code.