Engineering and construction account for maximum cases under insolvency law

Engineering and construction segments account for the maximum number of cases under the Insolvency and Bankruptcy Code (IBC), according to an Assocham-EY research paper. These are followed by metals and mining, food, beverage and hospitality, the paper added.

It pointed out that, while the valuations of the stressed assets landing with the IBC regime may be the maximum for steel, the number of cases is smallest at 15. This is because the operational scale of such companies seeking resolution is quite large, while the sector being quite capital intensive.

However, as many as 62 cases relating to engineering and construction have gone for resolution under the IBC, reflecting the kind of stress the sector is battling in the entire infrastructure space, the paper said.

Metals and mining sector contributed the second largest number of cases at 56 (up to last week of August, 2017), it added.

Other sectors like food, beverage and hospitality had 43 cases, textiles (22) and steel (15).

In terms of geographical coverage, Delhi saw the maximum of 62 cases, followed by Mumbai 59, Chennai 40, Kolkata 23 and Hyderabad 16, since the IBC became effective from December 2016, the paper said.