Operational creditors trigger 50% of insolvency resolution process: IBBI

Almost 50 per cent of corporate insolvency resolution process (CIRP) cases initiated against corporate debtors is by operational creditors, while financial creditors have initiated 40 per cent of the total CIRPs against corporate debtors, the data compiled by Insolvency and Bankruptcy Board of India (IBBI) till June 2019 revealed. Of the 2,162 CIRPs initiated, 1,080 have been by operational creditors and 868 are by financial creditors. The remaining 10 per cent or 214 of the CIRPs initiated are by the corporate debtors themselves. In terms of sectoral distribution, 41 per cent of the corporate debtors against whom CIRPs have been initiated are from the manufacturing sector, 19 per cent from real estate, renting, and other businesses. Also, corporate debtors from the construction sector make up for more than 10 per cent of CIRPs.