Debt Recovery

The number of insolvency cases increased 25 per cent in the December 2022 quarter, while recovery of debt through the process remained the lowest at 23.45 per cent during the period, an analysis showed. While the number of insolvency petitions increased by a steep 25 per cent, the overall recovery rate till the third quarter of FY23 was just 30.4 per cent, implying a haircut of 69.6 per cent. The cumulative recovery rate has been on a downtrend, decreasing from 43 per cent in Q1FY20 and 32.9 per cent in Q4FY22, according to an analysis of the latest numbers of insolvency board IBBI carried out by Care Ratings. However, the Q3FY23 recovery was the lowest at 23.45 per cent, it said. Sanjay Agarwal, a senior director with the agency, said this steep fall has been due to the fact that most of the larger resolutions have already been executed and a significant number of liquidated cases are either BIFR (Board for Industrial and Financial Reconstruction) cases and/or defunct with high ...

SARFAESI and Debt Recovery Tribunals have yielded recovery rates comparable to the IBC mechanism, says Trend and Progress Report

Infra lending firm's affidavit says it has reduced the number of entities under it from 302 to 101

In November last year, the Reserve Bank of India had sent the company to debt resolution after it defaulted on its loans worth Rs 24,000 crore

The cumulative recovery rate under the insolvency resolution processes of debt-ridden companies declined to 30.18 per cent at the end of the September quarter, indicating that lenders took more haircut on their exposure, shows a study. The recovery rate has fallen steeply from a peak of 43 per cent in Q1 FY20. Of the Rs 7,90,626.2 crore claims from the financial creditors admitted by various benches of the National Company Law Tribunal (NCLT), only Rs 2,43,452.5 crore or 30.18 per cent have been recovered till the end of Q2 FY23, as per an analysis of IBBI data done by Care Ratings. The overall recovery rate implies a haircut of around 70 per cent for the lenders. The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the Insolvency and Bankruptcy Code (IBC), which provides for market-linked and time-bound resolution of stressed assets. The cumulative recovery rate has been on a downtrend, falling from 43 per cent in Q1 FY20 and 32.9 per cent in Q

The leaders said they would step up efforts to implement the Common Framework for debt treatments in a "predictable, timely, orderly and coordinated manner"

Price band set at Rs 197-207 a share; retail portion sold 8.7x

The NHRC on Thursday issued a notice to Rajasthan government over reports that girls are being auctioned on stamp paper in half a dozen districts of the state and the refusal thereof is resulting in the "rape of their mothers to settle financial disputes on the diktats of caste panchayats". The National Human Rights Commission (NHRC) has taken suo motu cognizance of a media report, it said in a statement. The chief secretary of Rajasthan and the state's director general of police (DGP) have been asked to respond to the commission within four weeks. Citing a media report, the NHRC said that whenever there is a dispute between the two parties particularly involving financial transactions and loans, girls aged between eight years and 18 years are auctioned to recover money. A media report said that after being auctioned, these girls are sent to UP, MP, Mumbai, Delhi and even foreign countries and subjected to physical abuse, torture and sexual assault in slavery. If true, the contents

Two years ago the Group of 20 launched the Common Framework - a mechanism designed to provide a swift and comprehensive debt overhaul to nations buckling under debt burdens after Covid-19 shock

They have been losing business as the IBC process picks up pace

The National Company Law Tribunal (NCLT) has for the third time extended the deadline for debt-ridden Reliance Capital's resolution process to January 31. The earlier deadline was November 1, 2022. This is the third extension as the timeline has been extended twice in the past, sources said. As per the Insolvency and Bankruptcy Code (IBC) rules, the administrator had to originally close the resolution of RCL within 180 days, by June 3, 2022. Earlier, the lenders of Reliance Capital had given an extension of 30 days to the bidders for submission of binding bids, along with an EMD of Rs 75 crore, by October 31. The bidders were not happy with this 30 days extension as most of them had sought an extension by 2-4 months. Reliance Capital had received 14 non-binding bids for its multiple businesses. Six companies had submitted bids for the entire company, while the rest of the bidders had submitted bids for its multiple subsidiaries. Two options are available for the bidders. The fir

Targets repaying remaining debt in eight years; Rs 1,200 crore opened on Tuesday

Suzlon Energy would be able to pare its debt by Rs 583.5 crore with full subscription of its Rs 1,200 crore rights issue which opened on Tuesday, the company said. "Rs 583.5 crore debt will be repaid with the assumption of full subscription of Rs 1,200 crore rights issue opened on Tuesday," Suzlon Group Chief Financial Officer Himanshu Mody said in a virtual press conference. He said the total debt of the company was Rs 3,200 crore as of June quarter 2022-23 and the company would be able to repay the remaining debt in the next eight years. Mody emphasised that the company would have much leaner, healthier and better balance sheet after the issue and there will be no decline in the promoters' holding after the issue. About an earlier instance of decline in promoter holding, he said it happened due to conversion of certain bonds (debt) into equity (under the debt restructuring plan). Earlier this month, Suzlon Energy had said its promoters had reconfirmed their participation in the

Nearly half of the 3,247 insolvency cases have been resolved through liquidation, and only a paltry 457 or 14 per cent of them through asset sale as per their lenders-approved resolution plans, a report said on Friday. Even the various resolution processes have witnessed the recovery of debt of just 31 per cent on an average, said the data from the Insolvency & Bankruptcy Board of India. The data which covers all the cases since the implementation of the Insolvency and Bankruptcy Code (IBC) five years ago till December 2021 reflects very slow pace of the process, according to an analysis by Icra Ratings. Liquidation means lenders or financial firms face the maximum brunt of losses on their books. Of the Rs 7.52 lakh crore claims made by the creditors on their borrowers, the lenders could realise only Rs 2.5 lakh crore, reflecting the pains of liquidation that lenders were forced to suffer, Icra Ratings said in its analysis. While various NCLTs (National Company Law Tribunals) have

With the economy coming back on the rails post-COVID-19 pandemic, the Reserve Bank of India may consider a strict debt recovery mechanism with regulatory backing to boost activities of lending institutions and ensure easy availability of funds for individuals, V Swaminathan, CEO Andromeda & Apnapaisa, said. Having gone through a rough patch following the outbreak of the pandemic and subsequent lockdown, the lending institutions are expecting buoyancy in growth in the next financial year beginning April 1, he said. "As the entire economy is coming back on track, we have witnessed an overall growth of around 30 per cent year-on-year across all the segments. The next financial year we are expecting to continue at the same pace, as the market sentiment is positive and the projections are progressive," Swaminathan said. He further said that since COVID-19 struck, banks have become quite selective in terms of their exposure towards lending through partners and NBFCs as part of internal .

Debt-ridden Future Retail has made a payment of $14 million for interest due on the dollar-denominated notes (USD Notes) listed on the Singapore Stock Exchange after missing the due date last month.

The early numbers indicate that we have seen traction in the retail book. But, not much traction was seen in the corporate book, said Dinesh Khara, Chairman, SBI

This is the fourth round of the bidding process in the matter of JIL bankruptcy case.

SBI will conduct e-auctions of 12 bad accounts this month to recover dues of over Rs 506 crore under sale to asset reconstruction company (ARC) mechanism

A Parliamentary panel has asked NHAI to explore restructuring of existing debt and look for options to raise long-term funds.