These 12 firms alone owed their financial creditors as much as Rs 3.45 trillion.
Financial creditors recovered as much as 51% of their admitted claims in 8 of the 12 large cases that were recommended by the Reserve Bank of India for resolution under the Insolvency and Bankruptcy Code (IBC) framework, Parliament was informed on Wednesday. These 12 firms alone owed their financial creditors as much as Rs 3.45 trillion.
The recovery was made in 2017. The corporate insolvency resolution process is still going on in case of two stressed firms (Era Infra Engineering and Jaypee Infratech) and two others (Lanco Infratech and ABG Shipyard) are getting liquidated, minister of state for finance Bhagwat Karad said in a written reply tabled in the Rajya sabha.
The eight large firms that witnessed resolution owed a total of Rs 2.26 trillion to financial creditors while their liquidation value was only Rs 52,000 crore, Karad said. These are Bhushan Steel, Bhushan Power & Steel, Electrosteel, Essar Steel, Jyoti Structures, Monnet Ispat & Energy, Amtek Auto and Alok Industries.
“Further, realisable value for financial creditors through the approved resolution plans was Rs 1.16 trillion, which is 221% of the liquidation value and 51 % of the admitted claims,” he said.
