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152 Economic Survey 2021-22

4.58 The realisable value of the assets available with the 421 CDs rescued when they entered
the CIRP, was only `1.48 lakh crore, though they owed `7.94 lakh crore to creditors. The
resolution plans realised `2.55 lakh crore, which is more than 172 per cent of the realisable
value of these CDs. Though recovery is incidental under the Code, the Financial Creditors (FCs)
recovered 32.11 per cent of their claims, which reflects the extent of value erosion by the time
the CDs entered CIRP, yet it is the highest among all options available to creditors for recovery
(Table 24).

Table 24: Status of distressed assets as of September 30, 2021(Amount in ` Crore)
Companies Companies Ordered
Description Total
Rescued for Liquidation
No. of Companies 421 1419 1840

Aggregate Claims 794168 738631 1532799
Liquidation Value 147886 52036 199922
Assets available % of Aggregate Claims 18.62 7.04 13.04
Resolution Value 254983 NA 254983

Resolution Value as % of Liquidation Value 172.42 NA NA
Resolution Value as % of Aggregate Claims admitted 32.11 NA NA
Average time taken 495 days 375 days 435 days

Cost % of Resolution Value 0.54 NA NA
Source: IBBI 2021
(b) Liquidations

4.59 The 1419 CDs ending up with orders for liquidation had an aggregate claim of `7.38 lakh
crore. However, they had assets, on the ground, valued only at `0.52 lakh crore. Till September
2021, 264 CDs have been completely liquidated which had outstanding claims of `45,790 crore,
but the assets were valued at `2,025 crore. `1,983 crore was realised through the liquidation of
these companies (Table 25).

Table 25: Status of Liquidation Process as of September 30, 2021

Status of Liquidation Number
Initiated 1419 *

Final Report submitted # 264
Closed by Dissolution 151

Closed by Going Concern Sale 6
Compromise / Arrangement 7

Ongoing ** 1155
>Two years 456

> One year ≤ Two years 333