Ministry of Corporate Affairs

Posted On: 24 JUL 2018 6:02PM by PIB Delhi

The Financial Creditors have realized claims of approximately ₹ 47,426.75 crore in 26 cases where resolution plans are submitted under the IBC framework since its enactment.

The Union Minister of State further stated that the Insolvency & Bankruptcy Code lays down a time bound and transparent framework for resolving cases of insolvency by balancing the interests of all stakeholders and maximising the value of stressed assets, post unloading it by way of insolvency resolution or liquidation as the case may be.  Apart from the direct impact in terms of time bound resolution, the IBC has also impacted the borrowing and lending culture in the country.  As a result, borrowers are no more willing to over-leverage debt to unsustainable levels.  Similarly, lenders have also become more careful due to strict NPA provisioning norms laid down by the Reserve Bank of India.

This was stated by Shri P.P. Chaudhary, Union Minister of State for Corporate Affairs in written reply to a question in Rajya Sabha today.

The Union Minister of State also provided status of process of 12 companies identified in the first phase by RBI, which is as follows:

Corporate Insolvency Resolution Process (CIRP) of 12 companies as on 16^th July, 2018

 All amounts in Rs. crore

Sr.No.	Name of Corporate Debtor	Admission Date	180/270th Day	Total Claims Admitted	Assets on Balance Sheet(Last Available)	Status
	Transactions -In process
1	ABG Shipyard Ltd.	01-Aug-17	28-Apr-18*	18532.00	11092.00	In process
2	Alok Industries Ltd.	18-Jul-17	14-Apr-18	30241.64	32362.00	In process
3	Amtek Auto Ltd.	24-Jul-17	19-Apr-18	12718.97	15572.00	In process
4	Bhushan Power and Steel Ltd.	26-Jul-17	23-Jun-18*	48122.94	42001.00	In process
5	Era Infra Engineering Ltd.	08-May-18	04-Nov-18	11785.16	8132.40	In process
6	Essar Steel India Ltd.	02-Aug-17	28-May-18*	51848.00	62699.00	In process
7	Jaypee Infratech Ltd.	09-Aug-17	12-May-18	10373.20	18201.00	In process
8	Jyoti Structures Ltd.	04-Jul-17	31-Mar-18	8194.77	5465.00	In process
9	Lanco Infratech Ltd.	07-Aug-17	04-May-18	53157.90	18067.00	In process
10	Monnet Ispat and Energy Ltd.	18-Jul-17	14-Apr-18	11079.60	9077.00	In process
11	Bhushan Steel Ltd.	26-Jul-17	22-Apr-18	57505.05	60463.00	Approved by NCLT on 15th May, 2018.  Successful Resolution Applicant is Tata Steel Ltd (through its wholly owned subsidiary, Bamnipal Steel Ltd)
12	Electrosteel Steels Ltd	21-Jul-17	17-Apr-18	13301.84	13016.00	Approved by NCLT on 17th April, 2018.  Successful Resolution Applicant is Vedanta Star Ltd.
	Total			326861.10	296147.40

* Extended by NCLT

The Union Minister of State further provided information with respect to the money recovered in completed transactions, which is as follows: 

COMPLETED TRANSACTIONS OF TWO COMPANIES OUT OF 12 COMPANIES 

Electrosteel Steels Ltd.: Its insolvency resolution concluded with the approval of resolution plan of Vedanta Ltd. by the Adjudicating Authority on 17^th April, 2018. The details of realization under approved resolution plan are as under:

Particulars	Outcome
Liquidation Value (Rs. crore)	2899.98
Realization by Claimants (Rs. crore)	5320.00

The details of realizations by claimants are as under:

Claimants	Amount of Claims Admitted (Rs. crore)	Amount Realized (Rs. crore)	Realization as % of Claim
Financial Creditors	13175.14	5320	41.83
Other Claimants	783.21	0	00.00
All Claimants	13958.36	5320	38.11

Bhushan Steel Ltd.: Its insolvency resolution concluded with the approval of resolution plan of Bamnipal Steel Ltd., wholly owned subsidiary of Tata Steel, by the Adjudicating Authority on 15^th May, 2018. The details of realization under approved resolution plan are as under:

Particulars	Outcome
Liquidation Value (Rs. crore)	14,541.00
Realisation by Claimants (Rs. crore)	36,771.00

The details of realizations by claimants are as under:

Claimants	Amount of Claims Admitted (Rs. crore)	Amount Realised (Rs. crore)	Realisation as % of Claim
Financial Creditors	56,022	35,571	63.50
Other Claimants	1,483	1,200	80.92
All Claimants	57,505	36,771	63.94

****

DSM/RM/KMN

Insolvency resolution under IBC secures creditor recoveries and enforces time bound processes, reshaping borrowing and lending practices. The Insolvency & Bankruptcy Code provides a time bound, transparent corporate insolvency mechanism that balances stakeholder interests and has altered borrowing and lending behaviour; in twelve systemic CIRP cases most remain in process while two approved resolution plans produced recoveries for financial creditors of roughly forty two percent and sixty three percent of admitted claims respectively, with liquidation values and aggregate realisations reported to illustrate creditor outcomes.