Page 15 - IBBI

INSOLVENCY AND BANKRUPTCY NEWS

Figure 9: Distribution of Closed CIRPs - Initiated by FCs Figure 12: Reasons for Withdrawal of CIRPs
249
Commencement
of Liquidation
138
124
53% 39 34

15%
20%
12%

Appeal/Review/ Full Full Agreement Other Others
Approval of Settled settlement settlement to settle in settlements
Resolution Plan Withdrawal with the with other future with
u/s 12A applicant creditors creditors
Note: Data in 2 cases is awaited.
Figure 13: Distribution of CIRPs Withdrawn
(as per Admitted Claims)
55%
Figure 10: Distribution of Closed CIRPs - Initiated by OCs
Commencement
of Liquidation 22%
Approval of 14%
Resolution Plan 39%
9% 4% 4%
1%
23%
29%
≤ 1 crore > 1 crore > 10 crore > 50 crore > 100 crore > 1000
≤ 10 crore ≤ 50 crore ≤ 100 crore ≤ 1000 crore crore
Withdrawal Note: Data awaited in 2 CIRPs.
u/s 12A Appeal/Review/
Settled Resolution Plans
About 47% of the CIRPs, which were closed, yielded orders for
The status of ongoing CIRPs as on March, 2022 in terms of time taken is liquidation, as compared to 14% ending up with a resolution plan.
presented in Figure 11 However, 76% of the CIRPs ending in liquidation (1196 out of 1581 for
which data are available) were earlier with Board for Industrial and
Financial Reconstruction (BIFR) and / or defunct (Figure 14). The economic
value in most of these CDs had almost completely eroded even before they
Figure 11: Timeline: Ongoing CIRPs were admitted into CIRP. These CDs had assets, on average, valued at less
than 8% of the outstanding debt amount.
80%
70% 66% Figure 14: CIRPs ending with Order of Liquidation:
State of CD at the Commencement of CIRP
60%
50%
40% 24%
Others
30%
20% 13% 76%
12% Either in BIFR or
10% 9% Non-functional or both
0%
> 270 days > 180 days ≤ > 90 days ≤ ≤ 90 days
270 days 180 days
Note:
1. There were 88 CIRPs, where CDs were in BIFR or non-functional but had resolution value higher than
Withdrawals under Section 12A liquidation value.
2. Includes cases where no resolution plans were received and cases where liquidation value is zero or not
Till March 31, 2022, a total of 586 CIRPs have been withdrawn under 3. estimated.
Data of 27 CIRPs is awaited.
section 12A of the Code. The reasons for withdrawal and distribution of
claims in these CIRPs are presented in Figure 12 and 13. Almost three Till December, 2021, 457 CIRPs had yielded resolution plans as presented
fourth of these CIRPs had claims of less than ₹ 10 crore.
in the last newsletter. 13 more CIRPs were later reported as yielding
resolution plans during that period, as presented in Part A of Table 1.

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