‘FY21 to witness significantly lower realisations under IBC’

The Hindu Business Line | Jun 3, 2020 at 1:30 PM
  • Financial creditors could realise about ₹60,000 to ₹70,000 crore in FY21 through the Insolvency and Bankruptcy Code (IBC), a significant decline compared to the ₹1-lakh crore realised in FY20.
  • ICRA expects the resolution of corporate insolvency resolution proceedings (CIRPs) to be impacted during FY21 due to a decline in the number of CIRPs yielding a resolution plan, as well as an increase in haircuts that lenders would have to take.
  • Abhishek Dafria, Vice-President, ICRA, observed that the pandemic has thrown up new operational challenges for the various parties involved in a resolution process, resulting in limited cases yielding a resolution plan, especially in Q1 (April-June) FY21.