The government on Tuesday said that financial creditors have realised Rs 2.45 lakh crore or 36 per cent of their total claims under the insolvency resolution process till the end of June.
As many as 4,540 companies were admitted under the corporate insolvency resolution process as of June 30 this year. The process is initiated under the Insolvency and Bankruptcy Code (IBC).
"394 companies were resolved till 30th June, 2021 wherein Financial Creditors (FCs) including financial institutions, had total claims amounting to Rs 6.80 lakh crore, out of which Rs 2.45 lakh crore have been realised, which is 36 per cent of their claims," Minister of State for Corporate Affairs Rao Inderjit Singh told the Rajya Sabha in a written reply.
The queries were about the total number of cases referred under the Code, number of cases resolved and the percentage of realisation of amount lent by financial institutions.
According to him, the insolvency resolution process of the corporate debtor is market driven and the outcome depends on market forces which varies from case to case and sector to sector.
"The value realised by creditors depends on available assets at the stage of admission of case under the Code," he added.
This was in response to a query on whether it is a fact that the haircut was above 90 per cent in some cases.
Published 10 August 2021, 22:35 IST