- After slowing in the pandemic period of FY21 and FY22, the number of insolvency cases referred has increased
by 24% y-o-y in Q4FY23. However, despite the increase, the number of cases admitted to the insolvency
process continued to be lower compared to earlier quarters in FY20. The distribution of cases across sectors
continues to remain broadly similar, compared to earlier periods given the extended resolution timelines. - The overall recovery rate till Q4FY23 was 31.82% implying a haircut of approximately 68%. The cumulative
recovery rate has been on a downtrend, decreasing from 43% in Q1FY20 and 32.9% in Q4FY22 as larger
resolutions have already been executed and a significant number of liquidated cases were either BIFR cases
and/or defunct with high-resolution time, coupled with lower recoverable values. However, it has improved
sequentially from Q3FY23 (30.4%).
Finance & Economy | News & Insights
Recovery Reaches 36% of Admitted Claims in FY23
![FVC – 2023-05-16T162919.701](https://b1663402.smushcdn.com/1663402/wp-content/uploads/2023/05/FVC-2023-05-16T162919.701.jpg?lossy=2&strip=1&webp=1)
Published: May 16, 2023
Author: TEXTILE VALUE CHAIN
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