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The average time taken for a corporate insolvency resolution process (CIRP) yielding through resolution or liquidation is at a three-year high for all stakeholders, according to India Ratings and Research (Ind-Ra).
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The share of ongoing cases under CIRP for 270 days and above reflects a rising trend compared to 1QFY23 and FY23. While the realisation for financial creditors (FCs) and corporate debtors (CDs) through the resolution mechanism has marginally improved compared to 1QFY23, it remains much lower than FY21-22. Operational creditors (OCs) registered a three-year high realisation at 17.7% for CIRP closed through the resolution
The timelines for the resolution of a CIRP continue to increase for OCs and FCs. The timeline recorded for 1QFY24 has been the highest at 635 and 643 days for OCs and FCs, respectively, since FY21 and has seen a significant jump over 1QFY23 (OCs: 555, FCs: 552).
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