Sunday, April 11

Operational creditors benefit equally from IBC: IBBI

KOLKATA: The Insolvency and bankruptcy Board of India (IBBI) Saturday said both operational and financial creditors have benefitted alike from resolutions under the IBC.

IBBI chairman M S Sahoo said that it would be undair to say that resolutions under the Insolvency and Bankruptcy Code (IBC) were tilted towards operational creditors, as is widely perceived.

“Our data shows that after resolutions, recovery of financial creditors on an average have got 48 per cent of their claims. While, the operational creditors from the same resolution have got back 48.3 per cent, though marginally, they are better treated,” Sahoo said here on the sidelines of Calcutta Chamber of Commerce interaction on IBC.

“NCLT (National Company Law Tribunal) does not approve a plan unless it balances the interest of all the stakeholders,” Sahoo said.

In December, the NCLT had observed that operational creditors should have voting rights to have a bigger say in any resolution process.

Sahoo, however, did not comment on it.

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