Key data that shows the progress IBC has made in saving a firm in distress

The latest data shows while the number of cases admitted to CIRP has almost doubled, so have the liquidations

Three years of Insolvency and Bankruptcy Code(IBC) have seen the law evolve at every step. The latest data shows while the number of cases admitted to corporate insolvency resolution process (CIRP) has almost doubled, so have the liquidations. About 58 per cent of the CIRPs, which were closed, ended in liquidation including two of the big 12 NPAs — Lanco Infratech and ABG Shipyard — as compared to 14 per cent ending with a resolution plan. However most of the cases — 72 per cent — ending in liquidation were earlier in Board of Industrial and Financial Reconstruction (BIFR) or defunct. As more clarity comes to the law and more pending cases get resolved, the overall approvals for resolution plans in 2019 went up by 51 per cent. While a CIRP must ordinarily be completed in 330 days from the date of commencement, more than 32 per cent of the current cases has gone beyond 270 days. Following are the key figures which present the progress IBC has made in saving a company in distress.