 "stressed firms, companies, insolvency, stressed assets")
The realisation from stressed assets are expected to decline by 30-40 per cent in Fy21 due to the COVID-19 pandemic and the suspension of new proceedings under the Insolvency and Bankruptcy Code (IBC).
According to rating agency Icra amounts financial creditors would get from troubled assets may be Rs 60,000-70,000 crore in the current financial year (Fy21), down from Rs one trillion in FY20.
The resolution of corporate insolvency resolution proceedings (CIRPs) would be impacted in FY21 due to a drop in the number of CIRPs yielding a resolution plan and a rise in haircuts lenders may have to take.
