80% of resolved IBC cases in liquidation at the end of Q2FY19: Report

Data up to the end of September 2018 shows that of the total 1,198 cases that have been admitted into insolvency proceedings so far, 816 are undergoing resolution

Almost two years after the inception of the insolvency and bankruptcy (IBC) process, 212 companies have ended up in liquidation. These comprise almost 80 per cent of all those companies that have completed the IBC process. On the other hand, companies have found new buyers in 52 cases.

In 30 of these 212 cases of liquidation, the resolution value proposed was greater than the liquidation value. This implies that in all these cases, the committee of creditors decided to liquidate the company and take a deeper haircut on their loans rather than go for a higher offer by the bidders.