IBC process: 137 firms set for liquidation, but buyer interest is muted

With assets depreciating over time, it will lead to large haircuts for lenders & creditors: Experts

The majority of companies going for liquidation under the Insolvency and Bankruptcy Code (IBC) have been non-operational for almost over a decade.
 

With assets depreciating over time, experts say, the demand from buyers will be “muted”, leading to large haircuts for lenders and creditors.

“These companies have not been doing well for a considerably long period and efforts have been made in the past to revive them, but these failed,” said Anil Gupta, vice-president at ratings and research firm ICRA.

In an email response, ICRA told Business Standard of the 87 firms identified in March this year for liquidation, 74 were