Page 12 - IBBI-JUNE-SEPTEMBER 2022

The outcome of CIRPs, initiated stakeholder-wise, as on September 30,
2022 is presented in Table 1. Of the OC initiated CIRPs that were closed,
more than 53% were closed on appeal, review, or withdrawal. Such closures
accounted for around 72% of all closures by appeal, review, or withdrawal.
Table 1: Outcome of CIRPs, initiated Stakeholder-wise, as on
September 30, 2022
Outcome Description No. of CIRPs Initiated by
FCs OCs CDs Total
Status of CIRPs Closure by Appeal/Review/Settled 234 605 7 846
Closure by Withdrawal u/s 12A 198 535 7 740
Closure by Approval of Resolution Plan 313 188 51 552
Closure by Commencement of Liquidation 812 803 192 1807
Ongoing 974 877 93 1944
Total 2531 3008 350 5889
CIRPs yielding Realisation by creditors as % of Liquidation 201.0 120.1 147.2 177.6
Resolution Value
Plans
Realisation by creditors as % of their Claims 33.0 16.5 18.3 30.8
Average time taken for Closure of CIRP 567 561 521 561
CIRPs yielding Liquidation Value as % of Claims 6.6 9.2 9.2 7.3
Liquidations
Average time taken for Closure of CIRP 457 429 388 437
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Resolution Plans
Till June, 2022, 517 CIRPs had yielded resolution plans as presented in the
last newsletter. 15 more CIRPs were later reported as yielding resolution
plans during that period, as presented in Part A of Table 2. During July -
September, 2022, 23 CIRPs yielded resolution plans with different degrees
of realisation as compared to the liquidation value as presented in Part B of
Table 2. Two CDs which had earlier yielded resolution have since moved
into liquidation.
Till September 30, 2022, the creditors have realised ` 2.43 lakh crore
under the resolution plans. The fair value of the assets available with these
CDs, when they entered the CIRP was estimated at ` 2.14 lakh crore
and liquidation value of ` 1.37 lakh crore against the total claims of the
creditors worth ` 7.91 lakh crore. The creditors have realised 177.55%
of the liquidation value and 84.00% of the fair value (based on 456 cases
The distribution of stakeholder-wise initiation of CIRPs is presented in Figure
where fair value have been estimated). The haircut for creditors relative to
7. OCs triggered 51.08% of the CIRPs, followed by about 42.98% by FCs the fair value of assets was less than 16%, while relative to their admitted
and remaining by the CDs. It is observed that about 80% of CIRPs having claims is of around 69%. It may be noted that the realisable value does not
an underlying default of less than ` 1 crore were initiated on applications by include the CIRP cost, and many probable future realisations such as equity,
OCs while about 80% of CIRPs having an underlying default of more than realisation from corporate and personal guarantees, funds infused into the
` 10 crore were initiated on applications by FCs. The share of CIRPs initiated
CD including capital expenditure by the resolution applicants, and recovery
by CDs is declining over time. They usually initiated CIRPs with very high from avoidance applications.
underlying defaults.
About 35% of the CIRPs (193 out of 547 for which data are available), which
yielded resolution plans, were earlier with Board for Industrial and Financial
Reconstruction (BIFR) and/or defunct (Figure 8). In these CDs, the claimants
have realised 21.27% of their admitted claims and 169.56% of liquidation
value.

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Note: Data awaited in 6 cases
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IBBI newsletter.indd 12