IBC resolution plans jump 92% in Q1, ticket size falls

When a company cannot pay its debts, India has a special process called insolvency resolution.

In this process, experts try to make a plan to help the company pay back what it owes.

In the April to June quarter, the number of such plans being approved jumped by 92 percent.

That means 69 companies got resolution plans, up from 36 in the previous three months.

However, the money involved in these cases was much smaller.

The total claims covered fell by 84 percent, from about 77,565 crore rupees to 12,443 crore rupees.

The previous quarter included one very big case, Jaiprakash Associates, which had huge claims.

Creditors were able to recover a bigger share of the money this time, about 28.6 percent.

More new cases were also started, and the backlog of pending cases went down slightly.

The government recently changed the insolvency rules to make the process faster and fairer.