IBC has delivered 95% rescue rate: MS Sahoo
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Further, while the rescue rate for CIRPs stood at 25% in terms of the number of companies, the rescue rate under the IBC was 75% in terms of value of assets that saw resolution, Sahoo said.
Out of the 20,000 applications for initiation of corporate insolvency resolution process (CIRP), 16,000 applications were resolved before admission, Sahoo said during a virtual conference hosted by the National Law University Delhi on Thursday.
The Insolvency and Bankruptcy Code (IBC) has delivered a 95% rescue rate for financially distressed firms when insolvency proceedings that have been settled or withdrawn midway or cases that have been resolved prior to admission are included, according to MS Sahoo, chairman of the Insolvency and Bankruptcy Board of India (IBBI).