+
 Care Ratings: Timeline exceeded for completion of CIRPs in 2021
ECONOMY & POLICY

Care Ratings: Timeline exceeded for completion of CIRPs in 2021

According to a Care Ratings’ report, the Insolvency and Bankruptcy Board of India (IIBI) has undertaken several measures in the wake of Covid-19 pandemic across India to help contain the impact of spread of the disease. The economic fallout due to the ongoing Covid 19 pandemic has led to significant financial stress for borrowers across the board, this may remain a concern for some time as there is no clarity as to when Covid 19 will subside and even after that how much time the business and economy would require to return to normal.

To address this, several IBC measures were announced by the government on May 17, 2020 which included increasing the minimum amount of default for initiation of corporate insolvency resolution process to Rs. 1 crore and suspending filing of applications for initiation of corporate insolvency resolution process in respect of the defaults arising during the period of one year beginning from March 25, 2020. However, such suspension for filing of applications for initiation of corporate insolvency resolution process ended on March 24, 2021, but a significant jump in IBC cases is unlikely in the near future as there was a six-month moratorium for stressed borrowers followed by an OTR (one-time restructuring) and government emergency credit guarantee scheme.


The number of cases admitted for Corporate Insolvency Resolution Processes (CIRPs) over the last 16 quarters had increased significantly, and had been generally increasing every quarter, with a major portion of these cases being admitted over the last ten quarters, thereby highlighting the rising acceptance of IBC as an effective debt resolution mechanism. However, the cases admitted slowed down in FY21 (499 cases) compared with 1,978 cases admitted in FY20. The March-end quarter witnessed a drop of around 47% compared with the previous year. This can be attributed to the suspension of fresh bankruptcy proceedings for Covid-19 defaults which ended on March 24, 2021, says the report.

Image source

Read the full report here.

According to a Care Ratings’ report, the Insolvency and Bankruptcy Board of India (IIBI) has undertaken several measures in the wake of Covid-19 pandemic across India to help contain the impact of spread of the disease. The economic fallout due to the ongoing Covid 19 pandemic has led to significant financial stress for borrowers across the board, this may remain a concern for some time as there is no clarity as to when Covid 19 will subside and even after that how much time the business and economy would require to return to normal. To address this, several IBC measures were announced by the government on May 17, 2020 which included increasing the minimum amount of default for initiation of corporate insolvency resolution process to Rs. 1 crore and suspending filing of applications for initiation of corporate insolvency resolution process in respect of the defaults arising during the period of one year beginning from March 25, 2020. However, such suspension for filing of applications for initiation of corporate insolvency resolution process ended on March 24, 2021, but a significant jump in IBC cases is unlikely in the near future as there was a six-month moratorium for stressed borrowers followed by an OTR (one-time restructuring) and government emergency credit guarantee scheme. The number of cases admitted for Corporate Insolvency Resolution Processes (CIRPs) over the last 16 quarters had increased significantly, and had been generally increasing every quarter, with a major portion of these cases being admitted over the last ten quarters, thereby highlighting the rising acceptance of IBC as an effective debt resolution mechanism. However, the cases admitted slowed down in FY21 (499 cases) compared with 1,978 cases admitted in FY20. The March-end quarter witnessed a drop of around 47% compared with the previous year. This can be attributed to the suspension of fresh bankruptcy proceedings for Covid-19 defaults which ended on March 24, 2021, says the report. Image source Read the full report here.

Next Story
Infrastructure Urban

Continental Expands Assistive ‘OnBoard’ Tech to 100+ BMTC Buses

Continental India, in partnership with the Indian Institute of Technology Delhi, Raised Lines Foundation, and Bangalore Metropolitan Transport Corporation (BMTC), has expanded its smart assistive mobility solution ‘OnBoard’ across more than 100 BMTC buses in Bengaluru. Initially piloted on 25 buses, the solution is now set to be installed in 500 buses by year-end.The expansion was officially announced at the BMTC Central Office during a press conference attended by Shri Ramalinga Reddy, Hon’ble Transport Minister of Karnataka.‘OnBoard’ is a bus-mounted assistive technology designed t..

Next Story
Infrastructure Energy

Himadri PAT Rises 48% in Q1 Amid Global Battery Push

Himadri Speciality Chemical Ltd reported its highest-ever quarterly EBITDA of Rs 234 crore and PAT of Rs 183 crore for Q1 FY26, with profitability up 48% YoY. Revenue stood at Rs 1,100 crore.CMD Anurag Choudhary attributed the gains to operational efficiencies, improved yields, and focus on high-value battery materials. Himadri also revived Birla Tyres with a new brand identity and plans a multi-platform marketing campaign.The firm signed a licensing deal with Australia’s Sicona for SiCx® anode tech, enabling localisation and commercialisation in India. Himadri also invested USD 4.43 millio..

Next Story
Infrastructure Urban

Covestro Develops Fire-Safe Foam for EV Battery Safety

Covestro has introduced Baysafe® BEF, a new flame-retardant polyurethane foam designed to enhance battery safety in EVs and energy storage systems. The foam minimises thermal propagation between cells, reducing fire risk.The launch aligns with China’s GB 38031-2025 battery regulation, effective from July 2026, which sets stringent safety standards. "This innovation represents a significant step toward enabling sustainable mobility through enhanced safety," said Akhil Singhania, Global Head of PU Specialties at Covestro.The foam's lightweight structure and fire resistance meet the needs of g..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?