IBC Framework Faces Delays, Lower Realisations And Ethical Challenges: IBBI Chief

(MENAFN- KNN India) New Delhi, Oct 3 (KNN) The Insolvency and Bankruptcy Code (IBC)-led corporate insolvency framework has helped change India's credit culture, but continues to face challenges related to delays, lower realisations in some cases and ethical concerns, Insolvency and Bankruptcy Board of India (IBBI) Chairperson Jayanti Prasad said on Thursday.

Addressing the regulator's tenth annual day event, Prasad said delays, ethical issues and the size of realisations would remain key priorities for the regulator in the coming years.

IBC Helps Change Credit Culture

Highlighting the impact of the IBC, introduced in 2016, Prasad said resolution plans under the framework have realised more than Rs 4.35 lakh crore for creditors, equivalent to around 94 per cent of the admitted claims and 166 per cent of the liquidation value, the Business Standard reported.

He said the IBC accounts for more than half of the recoveries made by individual commercial banks.

Prasad added that more than 30,000 applications involving underlying debt of over Rs 14 lakh crore were settled before admission into the Corporate Insolvency Resolution Process (CIRP), as the possibility of losing control of their companies encouraged debtors to negotiate with creditors.

(KNN Bureau)

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