645 Real Estate Firms Saved from Insolvency: IBBI Chief
Large-scale real estate cases, such as Jaypee Infratech and SARE Gurugram, have yielded recoveries of over 60% of admitted claims.
Real EstateInsolvencyBankruptcyIbbiIbcReal Estate MumbaiAug 13, 2024
He noted that the number of rescued companies has been 2.5 times those liquidated. Stating that the insolvency code provided a structured mechanism for resolving insolvency, Mittal noted that insolvency resolution of real estate companies presents a unique set of challenges for the standardised Corporate Insolvency Resolution Process.
“With the help of measures as introduced from time to time, several real estate companies have been successfully resolved under the IBC,” he said.
The measures are designating home buyers as financial creditors, keeping possessed units out of liquidation estate, allowing project wise insolvency, and permitting home buyers to act as resolution applicants.
The large scale real estate cases, such as that of Jaypee Infratech, Kohinoor CTNL Infrastructure, SARE Gurugram and others have yielded recovery of more than 60% of the admitted claims, said the IBBI Chairman.
Mittal highlighted that as of June, as many as 3293 corporate debtors (CDs) have been rescued by the Code, and 2547 have been referred for liquidation. The resolved CDs resulted in realisation of more than 32% as against the admitted claims, and more than 161% as against the liquidation value.
“Resolution plans on average are yielding 84.9% of the fair value of CDs” noted Mittal.
About Insolvency and Bankruptcy Board of India (IBBI)
The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in the Indian insolvency and bankruptcy ecosystem. It was established on October 1, 2016, under the Insolvency and Bankruptcy Code, 2016 (IBC). The IBBI regulates and oversees the insolvency and bankruptcy process in India, ensuring that it is fair, transparent, and efficient.
Frequently Asked Questions
What is the Insolvency and Bankruptcy Board of India (IBBI)?
The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in the Indian insolvency and bankruptcy ecosystem, established on October 1, 2016, under the Insolvency and Bankruptcy Code, 2016 (IBC).
How many real estate companies have been rescued under the IBC?
According to IBBI Chairperson Ravi Mittal, 645 real estate companies have been successfully rescued under the IBC.
What is the average recovery rate for resolved corporate debtors under the IBC?
According to Mittal, resolution plans on average are yielding 84.9% of the fair value of corporate debtors.
What are the measures introduced by the IBBI to help resolve real estate insolvency cases?
The measures introduced by the IBBI include designating home buyers as financial creditors, keeping possessed units out of liquidation estate, allowing project wise insolvency, and permitting home buyers to act as resolution applicants.
How many corporate debtors have been referred for liquidation under the IBC?
According to Mittal, as of June, 2547 corporate debtors have been referred for liquidation under the IBC.
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