IBBI Chief Urges Insolvency Professionals to Enhance Transparency and Expedite Resolutions

IBBI chief Ravi Mital has called on insolvency professionals to be transparent and expedite the resolution of stressed assets under the Insolvency and Bankruptcy Code (IBC). He highlighted that no action will be taken against genuine innovations and noted significant recoveries have been made under the IBC.

In a strong call to action, IBBI chief Ravi Mital on Friday implored insolvency professionals to adopt maximum transparency and accelerate the resolution process of stressed assets under the Insolvency and Bankruptcy Code (IBC). Addressing stakeholders, Mital stressed that enhanced transparency would foster better recovery rates and a more efficient resolution process.

Mital assured professionals that innovative approaches to insolvency resolution would not face punitive actions. He emphasized the importance of maintaining companies as going concerns rather than resorting to liquidation. According to Mital, the IBC has played a pivotal role since 2016, recovering over Rs 3.4 lakh crore for creditors.

Highlighting the significant impact of the IBC, Mital shared data showing that around 32% of admitted claims have been recovered, with an impressive 80% recovery rate on a fair value basis. He also encouraged Indian insolvency professionals to explore international projects, underlining the evolving nature of the debtor-creditor relationship with over 28,000 applications withdrawn pre-resolution.

(With inputs from agencies.)