Insolvency tribunal NCLT approved 180 resolution plans in FY23, the highest-ever number so far, resulting in a total realisation of Rs 51,424 crore from stressed assets.
While, in terms of realisation of the amount for creditors, this is the second highest after FY19, when the total realisation was Rs 1.11 lakh crore after completing 77 insolvency proceedings including some big-ticket matters such as Essar Steel and Monnet Ispat.
This has helped creditors of debt-ridden firms in FY23 to realise 36 per cent of their total admitted claims of Rs 1,42,543 crore for the year ended March 31, 2023.
The combined total liquidation value of the assets of 180 corporate debtors (CD) was at Rs 39,110.10 crore and the creditors received 131 per cent higher than it, according to data released by the Insolvency and Bankruptcy Board of India (IBBI). Moreover in FY23, the National Company Law Tribunal (NCLT) admitted 1,255 applications from creditors for initiation of the Corporate Insolvency Resolution Process (CIRP), which is also one of the highest number since 2019.
The NCLT approved 147 resolution plans in FY22, 121 in FY21 and 134 in FY20, in which the creditors had realised 23 per cent, 17 per cent and 26 per cent of their admitted claims, respectively. As per the data, the NCLT has cleared a total of 678 resolution plans till the end of FY23 and “the creditors have realised Rs 2.86 lakh crore”.
“The fair value of the assets available with these CDs, when they entered the CIRP was estimated at Rs 2.65 lakh crore and liquidation value of Rs 1.70 lakh crore against the total claims of the creditors worth Rs 8.99 lakh crore,” the IBBI's latest newsletter said.