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

IBBI chairman M S Sahoo said that it would be unfair 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.

“The 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.

IBBI in cooperation deal with IFC

Meanwhile, The IBBI has also signed a cooperation agreement with the International Finance Corporation (IFC), a member of the World Bank Group. The deal will enable IFC to assist IBBI in further building the capacity of insolvency professionals and insolvency professional agencies for the purpose of the bankruptcy code.

The agreement was signed by KR Saji Kumar, Executive Director, IBBI, and Jun Zhang, Country Manager, IFC India, in the presence of Injeti Srinivas, Secretary, Ministry of Corporate Affairs, and MS Sahoo, Chairperson, IBBI.

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