Business Standard

Nearly half of insolvency proceedings led to liquidation rather than rescue

IBBI latest data suggest only 14 per cent yielded resolution plans since the inception of IBC

Company, firms, board of directors, IBC, insolvency, NPAs, loans

Bhavini Mishra
Nearly half of all corporate insolvency proceedings led to liquidation rather than rescue of companies owing to better valuation. Experts attributed the trend to inordinate delays in resolution process and lesser appetite to acquire stressed assets.

Only 14 per cent of corporate insolvency resolution processes (CIRPs) yielded a resolution plan between December 1, 2016, and March 31, 2022, according to the latest data from Insolvency and Bankruptcy Board of India (IBBI).

47 per cent of CIRPs ended in liquidation during the period. Out of a total of 5,258 corporate insolvency proceedings initiated, 3,406 have been closed.

Out of the closed

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First Published: May 31 2022 | 2:10 PM IST

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