Legacy stressed assets are dragging down recoveries under the insolvency and bankruptcy code (IBC) as companies that were already defunct or under rehabilitation before entering insolvency have recorded much lower recoveries, according to India Ratings. The rating agency said around 42% of insolvency cases that yielded resolution plans were previously with the Board for Industrial and Financial Reconstruction (BIFR) or were defunct before the insolvency process began. Creditors recovered only 17.5% of admitted claims in these cases compared with 33.3% for companies that were operational when they entered insolvency, the report said.