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The Hindu
3 days ago
- Business
- The Hindu
IBBI amends regulations to further streamline corporate insolvency resolution process
The Insolvency & Bankruptcy Board of India (IBBI) has notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2025 that aim to further streamline and strengthen corporate insolvency resolution process. As per the amended regulations notified on May 26, which come into effect immediately, the resolution professional — with the nod of Committee of Creditors (CoC) — can invite expression of interest for submission of resolution plans for a company under insolvency process either as a whole, or for sale of one or more of assets of the company, or for both. By enabling concurrent invitations, the resolution process will see reduced timelines, prevent value erosion in viable segments, and encourage broader investor participation, IBBI said. Where a resolution plan will provide for payment in stages, the financial creditors who did not vote in favour of the resolution plan shall be paid at least pro rata and in priority over financial creditors who voted in favour of the plan, in each stage. This approach balances the legitimate rights of dissenting creditors with the practical constraints of phased implementations, it said. Resolution professionals are now required to present all resolution plans received, including those that are non-compliant, to the CoC along with relevant details. CoC has been empowered to direct the resolution professional to invite the providers of interim finance to attend CoC meetings as observers without voting rights, IBBI said.
Time of India
22-05-2025
- Business
- Time of India
Resolution cases double liquidations under IBC, but delays drag on
India's Insolvency & Bankruptcy Code ( IBC ) is showing stronger results, with two cases now getting resolved for every one that goes into liquidation — a complete reversal of the situation in 2017-18, when five companies went into liquidation for each one resolved, the latest data showed. This change has been driven partly by a decline in old cases tied to liquidation and also by the improved quality of assets when they are admitted under the corporate insolvency resolution process (CIRP). The government and regulators are also stepping up efforts to improve how the Code functions. Some of these efforts include tracking cases that are still waiting to be admitted and monitoring those already undergoing resolution. The Insolvency & Bankruptcy Board of India ( IBBI ) said it has also revised its process for sharing real-time information on CIRP applications with the designated information utility (IU). One major development under the IBC framework has been the sharp increase in cases settled even before they enter the formal admission stage. According to IBBI, this is because promoters are increasingly opting to settle dues early, fearing the loss of control over their companies. Since the IBC was enacted, 30,310 cases involving a default of ₹13.8 lakh crore have been settled before formal admission. Following admission, the IBC has resolved 1,194 cases through resolution plans . Another 2,430 cases have been closed through settlements, withdrawals or appeals, while 878 liquidation proceedings have been completed, the regulator said. Live Events In total, 8,308 cases have been admitted under the resolution process so far, while decisions are pending in another 1,926 cases. A separate study has highlighted a clear shift in borrower behaviour. It found that borrowers are now repaying loans faster, and delays in repayments have reduced significantly between 2018 and 2024. There is also improvement in the number of resolution plans being approved in recent years, showing stronger usage of the Code as a tool for corporate recovery. However, a key concern remains the amount of time being taken to complete resolution processes. The most recent figures show that cases are taking an average of 597 days to resolve — over twice the 270-day extended deadline provided under the IBC. In fact, 78% of pending cases have already crossed the 270-day mark. Another 9% have been ongoing for between 180 and 270 days. Under the law, the National Company Law Tribunal (NCLT) is supposed to decide on insolvency cases within 180 days, with an extension of 90 days permitted. But in practice, these extensions have become a regular occurrence. (with TOI inputs)
Time of India
22-05-2025
- Business
- Time of India
Now, insolvency resolutions exceed liquidations
NEW DELHI: The Insolvency & Bankruptcy Code (IBC) has resulted in two cases being resolved under the new law for every one that goes into liquidation. This is a sharp contrast to 2017-18, when for every one resolution, five companies went into liquidation, latest data showed. This improvement is partly because the legacy cases related to liquidation have come down and also due to better quality of assets when they are admitted for corporate insolvency resolution . A number of initiatives are being taken to improve the outcomes of the Code (IBC). These include monitoring of cases pending for admission and ongoing CIRPs (corporate insolvency resolution processes). Further, the Insolvency & Bankruptcy Board of India (IBBI) revised its mechanisms for real-time sharing of information, regarding applications for the initiation of CIRP with the information utility (IU), IBBI said. Besides, according to the latest numbers, nearly 25 times more cases are being settled even before they are admitted, as the promoters are keen to settle the dues, fearing losing control over their companies. Since the law was enacted, 30,310 cases with underlying default of Rs 13.8 lakh crore were settled pre-admission. Post-admission, IBC resolved 1,194 cases through resolution plans, 2,430 cases were closed through settlement, withdrawals and appeal, and 878 liquidations have closed, IBBI said. So far, 8,308 cases have been admitted for resolution, with decision pending in case of 1,926 companies. Separate data released in a study showed that there is a marked improvement in borrower behaviour, resulting in fewer delays in repayment of loans availed from banks. In fact, the number of days for which a loan remained overdue has come down significantly between 2018 and 2024, the study said. In recent years, there is also a marked improvement in the number of cases being disposed of as resolution plans have been approved. The big worry, however, is the time taken in completing the resolution process. The latest data pegs the time taken at 597 days - more than twice the extended deadline of 270 days provided under IBC. In fact, 78% of the cases that are pending have dragged on for over 270 days. Another 9% have been going on for 180-270 days. The law provides for deciding cases in NCLT within 180 days, with an extension of 90 days allowed, but extensions have now become the norm.
Time of India
21-05-2025
- Business
- Time of India
Now, insolvency resolutions exceed liquidations
NEW DELHI: The Insolvency & Bankruptcy Code (IBC) has resulted in two cases being resolved under the new law for every one that goes into liquidation. This is a sharp contrast to 2017-18, when for every one resolution, five companies went into liquidation, latest data showed. This improvement is partly because the legacy cases related to liquidation have come down and also due to better quality of assets when they are admitted for corporate insolvency resolution . A number of initiatives are being taken to improve the outcomes of the Code (IBC). These include monitoring of cases pending for admission and ongoing CIRPs (corporate insolvency resolution processes). Further, the Insolvency & Bankruptcy Board of India (IBBI) revised its mechanisms for real-time sharing of information, regarding applications for the initiation of CIRP with the information utility (IU), IBBI said. Besides, according to the latest numbers, nearly 25 times more cases are being settled even before they are admitted, as the promoters are keen to settle the dues, fearing losing control over their companies. Since the law was enacted, 30,310 cases with underlying default of Rs 13.8 lakh crore were settled pre-admission. Post-admission, IBC resolved 1,194 cases through resolution plans, 2,430 cases were closed through settlement, withdrawals and appeal, and 878 liquidations have closed, IBBI said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trending in in 2025: Local network access control [Click Here] Esseps Learn More Undo So far, 8,308 cases have been admitted for resolution, with decision pending in case of 1,926 companies. Separate data released in a study showed that there is a marked improvement in borrower behaviour, resulting in fewer delays in repayment of loans availed from banks. In fact, the number of days for which a loan remained overdue has come down significantly between 2018 and 2024, the study said. In recent years, there is also a marked improvement in the number of cases being disposed of as resolution plans have been approved. The big worry, however, is the time taken in completing the resolution process. The latest data pegs the time taken at 597 days - more than twice the extended deadline of 270 days provided under IBC. In fact, 78% of the cases that are pending have dragged on for over 270 days. Another 9% have been going on for 180-270 days. The law provides for deciding cases in NCLT within 180 days, with an extension of 90 days allowed, but extensions have now become the norm. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Hindu
20-05-2025
- Business
- The Hindu
Creditors realisation stands at over 32.8% till March 2025 under bankruptcy framework: IBBI
Creditors have realised ₹3.89 lakh crore from resolution plans till March 2025, under India's Insolvency and Bankruptcy Code (IBC) enacted in the year 2016. The realisation is more than 32.8% as against the admitted claims and more than 170.1% as against the liquidation value, insolvency regulator Insolvency & Bankruptcy Board of India (IBBI) said in its January-March 2025 quarterly newsletter. Resolution plans on average are yielding 93.41% of fair value of the Corporate Debtors (CDs), it said. More than eight years have passed since the enactment of the IBC in the year 2016. The Code has rescued 1,194 CDs through resolution plans. Further, 1,276 cases have been settled through appeal, review or settlement, and 1,154 cases have been withdrawn under section 12A. The Code has referred 2,758 CDs for liquidation, IBBI said. Till March, 2025, 1,374 CDs have been completely liquidated with submission of the final report. Out of the 1,374 CDs, 878 have been closed. In the closed liquidations, the creditors have realised ₹9,330 crore, which is nearly 90% realisation as against the liquidation value, as per the data. As a result of the behavioural change effectuated by IBC, thousands of debtors are settling their dues before the start of insolvency proceedings, IBBI said. About 30,310 cases having underlying default worth ₹13.78 lakh crore have been settled pre-admission. Post admission, the IBC has resolved 1194 cases through resolution plans, 2,430 cases have been closed through settlement, withdrawals and appeal, and 878 liquidations have closed, it said. In 2017-18, for every 1 CD resolved, 5 CDs would go into liquidation. Steadily, this ratio has now improved to nearly 10 CDs being resolved against 5 CDs going to liquidation, IBBI said. Last 3 years have witnessed an unprecedented surge in the approval of resolution plans under the IBC. In 2024-25, 259 resolution plans were approved, 263 were approved in 2023-24 and 186 plans were approved in 2022-2023. 'While challenges persist, including process delays and recovery rates below expectations, the Code's foundational structure remains sound. As implementation matures and jurisprudence evolves, the IBC is well-positioned to overcome these hurdles and fully realize its transformative potential in India's financial ecosystem,' IBBI Chairman Ravi Mital said in the newsletter.
