Finance ministry said on Tuesday that half of the claims of lenders in the eight large bad loan cases flagged by the Reserve Bank of India was realisable through the bankruptcy resolution plans approved.
Eight of the 12 large bad loan cases, often described as the ‘dirty dozen’ were resolved under a market driven resolution process. These businesses owed ₹2.26 trillion to financial creditors while their liquidation value was Rs. 0.52 trillion, the ministry said.
The realisable value for financial creditors through the approved resolution plans in these cases was Rs. 1.16 trillion, which is 221% of the liquidation value and 51 % of the admitted claims, an official statement from the ministry said quoting minister of state for finance Bhagwat Kisanrao Karad.
Financial creditors had an aggregate outstanding claim of ₹3.45 trillion against the 12 corporate debtors. Out of these 12 corporate debtors, resolution plans have been approved in the case of eight corporate debtors and resolution plans are being worked out in respect of two corporate debtors. Two corporate debtors are undergoing liquidation process, the ministry said.
