If resolution takes long, recovery bound to drop

Insolvency and Bankruptcy Board of India study reveals recovery rate link to resolution time. Lenders recover 49.2% in 330 days, dropping to 36% for longer cases. Delays, triggered by litigations, erode distressed defaulter value, reducing creditor recovery value, as highlighted by IBBI chairperson Ravi Mital. IBC aims at business preservation.

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