As per inputs received from the Ministry of Corporate Affairs (MCA), corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC), was initiated by banks in the 12 large accounts that were referred by the Reserved Bank of India. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in written reply to a question in Rajya Sabha today.
Financial creditors had an aggregate outstanding claims of Rs 3.45 lakh crore against these corporate debtors. Out of these 12 corporate debtors, resolution plans have been approved in respect of eight corporate debtors, CIRP is ongoing in respect of two corporate debtors, and two corporate debtors are undergoing liquidation process.
With regard to resolution and settlement in these accounts, the eight corporate debtors, which were resolved through the market driven CIRP, owed a total of Rs 2.26 lakh crore to financial creditors while their liquidation value was Rs. 0.52 lakh crore. Further, realisable value for financial creditors through the approved resolution plans was Rs. 1.16 lakh crore, which is 221% of the liquidation value and 51 % of the admitted claims.