IBC News

Insolvency News in Newspapers

Collection of Insolvency and Bankruptcy news in various Newspapers.

Date: 06.09.2021

Heading

News & Link

Heading

News & Link

Heading

News & Link

Heading

News & Link

Heading

News & Link

Heading

News & Link

Heading

News & Link

Date: 23.09.2021

Govt may offer pre-pack insolvency resolution plan even for large firms

To quicken the pace of stressed asset resolution, the Centre may soon come up with a prepackaged insolvency framework under the IBC for large corporates, similar to the one introduced for SMEs.

https://www.business-standard.com/article/companies/govt-may-offer-pre-pack-insolvency-resolution-plan-even-for-large-firms-121092100545_1.html

Lenders defeating the IBC’s spirit

Videocon bid and, now, U-turn show banks defanging IBC by letting buyers acquire stressed assets at basement bargains

https://www.financialexpress.com/opinion/lenders-defeating-the-ibcs-spirit/2335568/

Reliance set to take over JBF Industries with CFM ARC

Bankers had sought takeover bids in July, and the Ahmedabad-based CFM ARC is understood to have put in a `825-crore bid for the company, which owes its lenders Rs 2,116 crore.

https://www.financialexpress.com/industry/reliance-set-to-take-over-jbf-industries-with-cfm-arc/2334798/

‘Not part of IBC’: NCLAT questions success fee for RPs

Resolution Professionals (RPs) and agencies hired by them to assist in management of resolution proceedings in some cases charge success fees contingent on a successful resolution for the company as part of their payment structure instead of higher upfront monthly fees.

https://indianexpress.com/article/business/economy/not-part-of-ibc-nclat-questions-success-fee-for-rps-7525827/

Date: 22.09.2021

Lead banker SBI wants NCLAT to call fresh bids for Videocon

In yet another twist to the tortuous debt resolution at Videocon Group, lead consortium lender State Bank of India has approached an appeals court to direct the Committee of Creditors (CoC) to reconsider its decision to accept a 95% collective haircut on the exposure.

https://economictimes.indiatimes.com/news/economy/finance/lead-banker-sbi-wants-nclat-to-call-fresh-bids-for-videocon/articleshow/86352181.cms

Lenders to DHFL may be paid this week

The SBI has signed the transaction document on September 20 while other lenders are likely to do so in the coming days.

https://www.thehindubusinessline.com/money-and-banking/lenders-to-dhfl-may-be-paid-this-week/article36587178.ece

Govt may offer pre-pack insolvency resolution plan even for large firms

To quicken the pace of stressed asset resolution, the Centre may soon come up with a prepackaged insolvency framework under the IBC for large corporates, similar to the one introduced for SMEs.

https://www.business-standard.com/article/companies/govt-may-offer-pre-pack-insolvency-resolution-plan-even-for-large-firms-121092100545_1.html

Reliance set to take over JBF Industries with CFM ARC

Bankers had sought takeover bids in July, and the Ahmedabad-based CFM ARC is understood to have put in a `825-crore bid for the company, which owes its lenders Rs 2,116 crore.

https://www.financialexpress.com/industry/reliance-set-to-take-over-jbf-industries-with-cfm-arc/2334798/

Govt shouldn’t have to guarantee NARCL SRs

Banks should ensure they recover as much as possible; else, the purpose of the ARC would be defeated

https://www.financialexpress.com/opinion/govt-shouldnt-have-to-guarantee-narcl-srs/2334117/

‘Not part of IBC’: NCLAT questions success fee for RPs

Resolution Professionals (RPs) and agencies hired by them to assist in management of resolution proceedings in some cases charge success fees contingent on a successful resolution for the company as part of their payment structure instead of higher upfront monthly fees.

https://indianexpress.com/article/business/economy/not-part-of-ibc-nclat-questions-success-fee-for-rps-7525827/

17 judgments in last 10 days, Justice Cheema retires as acting chairperson of NCLAT

Apart from approaching the Supreme Court with a plea challenging the Central government’s move to cut short his tenure by 10 days, Justice Cheema has also delivered as many as 17 judgments between September 10 and September 20, when he retired.

https://indianexpress.com/article/business/economy/17-judgments-in-last-10-days-justice-cheema-retires-as-acting-chairperson-of-nclat-7523442/

Date: 21.09.2021

Videocon insolvency: Lenders make U-turn, want fresh bids

After getting rapped for accepting Vedanta group’s bid that would give just 5 per cent of their outstanding loans, lenders to Videocon Industries on Monday approached the insolvency appellate tribunal NCLAT seeking fresh bids for the debt-laden consumer durable firm.

https://economictimes.indiatimes.com/industry/cons-products/durables/videocon-insolvency-lenders-make-u-turn-want-fresh-bids/articleshow/86369932.cms

Videocon insolvency: Lenders make U-turn, approach NCLAT for fresh bids

Billionaire Anil Agarwal’s Twin-Star Technologies had offered Rs 2,962 crore to takeover Videocon Industries, which was 4.15% of the admitted claims of Rs 64,838.63 cr of lenders.

https://www.business-standard.com/article/companies/videocon-insolvency-lenders-make-u-turn-approach-nclat-for-fresh-bids-121092001057_1.html

Govt shouldn’t have to guarantee NARCL SRs

Banks should ensure they recover as much as possible; else, the purpose of the ARC would be defeated.

https://www.financialexpress.com/opinion/govt-shouldnt-have-to-guarantee-narcl-srs/2334117/

Lenders seek fresh bids for Videocon

The matter is a complex one as earlier the CoC and the NCLT have approved the bid of Twin Star and legal provisions do not permit going back on the approvals once given.

https://www.financialexpress.com/industry/lenders-seek-fresh-bids-for-videocon/2334258/

Videocon insolvency: Lenders make U-turn, want fresh bids

SBI, the leading lender of Videocon Industries, has approached the NCLAT requesting for a rebidding of the 13 companies of the debt-ridden group, on account of strong observations against Rs 2,962 crore takeover bid by Anil Agarwal’s Twin Star Technologies.

https://www.financialexpress.com/industry/videocon-insolvency-lenders-make-u-turn-want-fresh-bids/2334111/

17 judgments in last 10 days, Justice Cheema retires as acting chairperson of NCLAT

Apart from approaching the Supreme Court with a plea challenging the Central government’s move to cut short his tenure by 10 days, Justice Cheema has also delivered as many as 17 judgments between September 10 and September 20, when he retired.

https://indianexpress.com/article/business/economy/17-judgments-in-last-10-days-justice-cheema-retires-as-acting-chairperson-of-nclat-7523442/

Videocon insolvency: Lenders make U-turn

Anil Agarwal’s Twin Star Technologies had offered Rs 2,962 crore to takeover Videocon Industries, which was 4.15 per cent of the admitted claims of Rs 64,838.63 crore of lenders.

https://indianexpress.com/article/business/companies/videocon-insolvency-lenders-make-u-turn-7523429/

‘It’s not weakness in IBC, but in how people are gaming it’: Nirmala Sitharaman

I lay a lot of emphasis on the professionals (managing the assets), which is why, along with NARCL, we have set  up IDRCL, says Nirmala Sitharaman, Union finance minister.

https://www.livemint.com/companies/people/its-not-weakness-in-ibc-but-in-how-people-are-gaming-it-11632165895732.html

Lenders seek to scrap sale of Videocon, move NCLAT

Vedanta’s winning bid to acquire Videocon’s assets through its company Twin Star Technologies is likely to fall through with lenders approaching the National Company Law Appellate Tribunal (NCLAT), seeking fresh bids for the firm.

https://timesofindia.indiatimes.com/business/india-business/lenders-seek-to-scrap-sale-of-videocon-move-nclat/articleshow/86379591.cms

Date: 20.09.2021

Private equity major Advent snaps up Eureka Forbes for Rs 4,400 crore, Shapoorji Pallonji Group to pare debt

The sale process, which began in November 2019, will help the over 156-year-old SP Group pair the debt pile and sharpen the focus on the flagship construction and engineering business under Afcons.

https://www.financialexpress.com/industry/private-equity-major-advent-snaps-up-eureka-forbes-for-rs-4400-crore-shapoorji-pallonji-group-to-pair-debt/2333477/

Retro tax to bad bank to telecom: Political call to bite economic bullet

For a government led by Prime Minister Narendra Modi sensitive to charges of corporate favouritism, acquiring substantive shareholding in a private company is a leap of faith. Buried in the fine print of the telecom package was this provision that lets the government do exactly that.

https://indianexpress.com/article/india/narendra-modi-troubled-assets-relief-program-indian-economy-7520460/

Ease of doing business at risk if issue of appointments to tribunals is not resolved

While hearing a challenge to the Tribunal Reforms Act, 2021, the Supreme Court came down heavily on the government of India. A bench headed by Chief Justice of India (CJI) N V Ramana observed that National Company Law Tribunals (NCLT), and the National Company Law Appellate Tribunal (NCLAT) are hamstrung by vacancies not being filled on time.

https://indianexpress.com/article/opinion/columns/ease-of-doing-business-tribunal-reforms-act-nclt-7520055/

Date: 19.09.2021

HC stays NCLT order on Viceroy Hotels

Expressing doubts over why the National Company Law Tribunal (NCLT) bench at Hyderabad preponed some pleas and pronounced orders without information to the parties, the high court on Thursday stayed the insolvency process pertaining to Hyderabad-based Viceroy Hotels firm.

https://timesofindia.indiatimes.com/city/hyderabad/hc-stays-nclt-order-on-viceroy-hotels/articleshow/86330668.cms

Date: 18.09.2021

Rare Plea by Judge Shows Disarray in India’s Bankruptcy Courts

In a rare plea, the chief judge at India’s bankruptcy appeals court petitioned the Supreme Court to let him work for three more days even after his term was cut short by the federal government.

https://www.bloomberg.com/news/articles/2021-09-16/rare-plea-by-judge-shows-disarray-in-india-s-bankruptcy-courts

Moratorium under IBC applies only to corporate debtor, not promoters: SC

he Supreme Court has held that moratorium under provisions of Insolvency and Bankruptcy Code (IBC), which restrains initiation of any fresh proceedings or discontinuance of existing ones, applies only to the corporate debtor and does not protect the promoters of the stressed company.

https://www.thehindubusinessline.com/news/moratorium-under-ibc-applies-only-to-corporate-debtor-not-promoters-sc/article36516581.ece

Tribunal postings: Govt budges, reinstates Cheema at NCLT till September 20

The development comes minutes after a Bench led by Chief Justice N V Ramana expressed displeasure and termed the abrupt curtailment of Justice Cheema’s tenure before the due date of retirement as “awkward.”

https://www.financialexpress.com/industry/tribunal-postings-govt-budges-reinstates-cheema-at-nclt-till-september-20/2331812/

Law does not permit any relief to Mistrys once their case on oppression failed

This, it has been argued, was required to do ‘substantial justice’ even though SP Group failed to prove its case on oppression and mismanagement. This position on the SC judgment is erroneous and lacks legal foundation.

https://www.financialexpress.com/industry/law-does-not-permit-any-relief-to-mistrys-once-their-case-on-oppression-failed/2332616/lite/

World Bank to stop ‘ease of doing business’ report as probe finds ‘data juggling’

The reports were flagged by the World Bank for certain “improper data changes” made in case of four countries — China, Azerbaijan, Saudi Arabia and the UAE — at the behest of senior executives at the bank.

https://indianexpress.com/article/business/economy/world-bank-to-stop-ease-of-doing-business-report-as-probe-finds-data-juggling-7516537/

Date: 17.09.2021

IFSC can act as a stepping stone for insolvency reforms

International Finance Service Centre (IFSC) at Gujarat International Finance Tec (Gift) City, a Special Economic Zone (SEZ), was conceptualised to create an offshore jurisdiction in India. The plan was to capture some of the business that was being carried out in Singapore, Mauritius, Dubai, Hongkong, London and similar centres of global finance.

https://economictimes.indiatimes.com/news/economy/policy/view-ifsc-can-act-as-a-stepping-stone-for-insolvency-reforms/articleshow/86282311.cms

Object of IBC to revive corporate debtor, liquidation last resort: SC

The top court dismissed an appeal filed by an ex-employee of a hotel in Chennai who was aggrieved by the resolution passed by the Committee of Creditors.

https://www.thehindubusinessline.com/news/national/object-of-ibc-to-revive-corporate-debtor-liquidation-last-resort-sc/article36488841.ece

Moratorium under IBC applies only to corporate debtor not to promoters: SC

The Supreme Court has held that moratorium under provisions of Insolvency and Bankruptcy Code (IBC) which restrains initiation of any fresh proceedings or discontinuance of existing ones applies only to the Corporate Debtor but does not protect the promoters of the stressed company.

https://www.business-standard.com/article/companies/moratorium-under-ibc-applies-only-to-corporate-debtor-not-to-promoters-sc-121091601418_1.html

Tribunal postings: Govt budges, reinstates Cheema at NCLT till September 20

The development comes minutes after a Bench led by Chief Justice N V Ramana expressed displeasure and termed the abrupt curtailment of Justice Cheema’s tenure before the due date of retirement as “awkward.”

https://www.financialexpress.com/industry/tribunal-postings-govt-budges-reinstates-cheema-at-nclt-till-september-20/2331812/

NCLT approves amalgamation of Lincoln Parenteral & Lincoln Pharmaceuticals

The corporate restructuring practice will bring lot of synergies for both the company and will lead to increased competitive strength…,” Lincoln Pharmaceuticals MD Mahendra Patel said.

https://www.financialexpress.com/industry/nclt-approves-amalgamation-of-lincoln-parenteral-lincoln-pharmaceuticals/2331610/

Date: 16.09.2021

Supreme court criticises Centre for 'cherry picking' names for Tribunals

he Supreme court on Wednesday pulled up the Centre over the recent appointments in some tribunals, saying it was “cherry-picking” candidates from the recommended list and that there was “no consistency” in the selection process.

https://www.business-standard.com/article/pti-stories/sc-pulls-up-centre-for-cherry-picking-candidates-in-appointments-in-tribunals-says-very-unhappy-situation-unfortunate-121091501406_1.html

MCA, Finance Ministry hammer out key changes to IBC at review meet

he Supreme court on Wednesday pulled up the Centre over the recent appointments in some tribunals, saying it was “cherry-picking” candidates from the recommended list and that there was “no consistency” in the selection process.

https://www.business-standard.com/article/pti-stories/sc-pulls-up-centre-for-cherry-picking-candidates-in-appointments-in-tribunals-says-very-unhappy-situation-unfortunate-121091501406_1.html

Banks look to resolve large assets even as NARCL gets set up

Some cases understood to be under consideration for transfer to the NARCL list are already undergoing insolvency proceedings such as Amtek Auto, Castex Technologies, JP Infra, Videocon Oil Ventures and Lavasa Corporation.

https://www.financialexpress.com/industry/banking-finance/banks-look-to-resolve-large-assets-even-as-narcl-gets-set-up/2331056/

SC unhappy over “hurried” appointment of acting NCLAT Chairperson

A bench headed by Chief Justice N V Ramana said it would take up the matter on Thursday and asked Attorney General K K Venugopal to take instructions on the issue.

https://www.financialexpress.com/industry/sc-unhappy-over-hurried-appointment-of-acting-nclat-chairperson/2330833/

Two-week deadline: Supreme Court slams govt for ‘cherry-picking’ names for tribunal appointments

“What is the sanctity of the selection committee (which is headed by Supreme Court Judges) if the government is going to have the last say? The selections that we conducted will become useless,” Justice Rao pointed out.

https://www.financialexpress.com/industry/two-week-deadline-supreme-court-slams-govt-for-cherry-picking-names-for-tribunal-appointments/2331053/

NCLT reserves order on Valli Arunachalam’s withdrawal plea on earlier waiver application

The submissions of the counsels centered around Order 23 Rule 1 of the CPC as also the NCLT rules and both side advanced technical arguments on the same, with AIL pleading that the withdrawal application should not be allowed.

https://www.financialexpress.com/industry/nclt-reserves-order-on-valli-arunachalams-withdrawal-plea-on-earlier-waiver-application/2330917/

Date: 15.09.2021

MCA, Finance Ministry hammer out key changes to IBC at review meet

A high-level review meeting was held on Tuesday with Chief Economic Advisor Krishnamurthy Subramanian, corporate affairs ministry, and senior officials to discuss some key changes to the Insolvency and Bankruptcy Code (IBC).

https://www.business-standard.com/article/economy-policy/mca-finance-ministry-hammer-out-key-changes-to-ibc-at-review-meet-121091401423_1.html

Liquidation as a going concern is an effort to maximise value & save firms under insolvency

In an effort to maximise the value of a company undergoing insolvency proceedings, the bankruptcy court has allowed for liquidation of the company as a going concern.

https://www.financialexpress.com/industry/liquidation-as-a-going-concern-an-effort-to-maximise-value-and-save-firms-under-insolvency-interview/2329836/

SC says no power to condone delay in NSEL appeal

A Bench led by Justice MR Shah said Parliament has not carved out any exception to a situation where limitation to file an appeal beyond a statutory period could be condoned.

https://www.financialexpress.com/market/sc-says-no-power-to-condone-delay-in-nsel-appeal/2330343/

Eye on value, govt seeks to ‘fast-track’ IL&FS resolution

IL&FS has already addressed Rs 43,600 crore of debt as of May 2021 and indicated that Rs 50,000 crore of estimated recovery is likely to be addressed by September 2021.

https://indianexpress.com/article/business/companies/eye-on-value-govt-seeks-to-fast-track-ilfs-resolution-7509316/

Swiss firm drags NFCL to NCLT

In an interesting development, a Swiss company dragged Nagarjuna Fertilisers and Chemicals Ltd (NFCL) to National Company Law Tribunal (NCLT) at Hyderabad over Rs 20 crore dues owed to it by the latter.

https://timesofindia.indiatimes.com/city/hyderabad/swiss-firm-drags-nfcl-to-nclt/articleshow/86192903.cms

Date: 14.09.2021

SC asks NCLT, NCLAT to strictly adhere to IBC timelines, clear pending resolution plans

The Supreme Court on Monday urged the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) to strictly adhere to the timelines stipulated under the Insolvency and Bankruptcy Code (IBC) and clear pending resolution plans within the deadline of 330 days.

https://economictimes.indiatimes.com/news/india/sc-asks-nclt-nclat-to-strictly-adhere-to-ibc-timelines-clear-pending-resolution-plans/articleshow/86177923.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Are creditors pushing Regen Powertech into ReNew Power’s hands?

The Committee of Creditors of the defunct wind turbine manufacturer, Regen Powertech Pvt Ltd, is opposing moves for fresh joint bids for the company along with a wholly-owned subsidiary, Regen Powertech Infrastructure Services Ltd, eventhough the bidders say a joint bid might fetch a higher value.

https://www.thehindubusinessline.com/companies/are-creditors-pushing-regen-powertech-into-renew-powers-hands/article36417598.ece

CoC resolution plan can't be modified or withdrawn: Supreme Court

The Insolvency and Bankruptcy Code (IBC) has come under a lot of scrutiny of late, with banks recovering very little money in a few cases. The latest reaction came from the Supreme Court, which on Monday said once the committee of creditors (CoC) submits a resolution plan for an asset, it cannot be modified or withdrawn by the resolution applicant. It also said the 330-day deadline for resolution of assets should be strictly adhered to.

https://www.business-standard.com/article/economy-policy/coc-resolution-plan-can-t-be-modified-or-withdrawn-supreme-court-121091301635_1.html

SC admits Videocon RP’s appeal seeking documents from suspended top brass

A Bench led by Justice Indira Bannerjee while admitting the appeal stayed a part of the NCLAT’s order that remitted the case back to the NCLT.

https://www.financialexpress.com/industry/sc-admits-videocon-rps-appeal-seeking-documents-from-suspended-top-brass/2329635/

Supreme Court asks insolvency tribunals to stick to resolution deadlines

A Bench led by Justice DY Chandrachud said that “inordinate delays cause commercial uncertainty, degradation in the value of the corporate debtor and makes the insolvency process inefficient and expensive.

https://www.financialexpress.com/economy/sc-asks-insolvency-tribunals-to-stick-to-resolution-deadlines/2329587/

Jet Airways to resume domestic services in Q1 of 2022: Jalan Kalrock

The first flight of Jet Airways would be on Delhi-Mumbai route, it mentioned, adding that the airline would now be headquartered in Delhi instead of Mumbai.

https://www.financialexpress.com/industry/jet-airways-to-resume-domestic-services-in-q1-of-2022-jalan-kalrock/2329118/

SC admits Videocon RP’s appeal seeking documents from suspended top brass

A Bench led by Justice Indira Bannerjee while admitting the appeal stayed a part of the NCLAT’s order that remitted the case back to the NCLT.

https://www.financialexpress.com/industry/sc-admits-videocon-rps-appeal-seeking-documents-from-suspended-top-brass/2329635/

Explained: Factors that can create turbulence for Jet Airways relaunch

Jet Airways 2.0, backed by businessman Murari Lal Jalan and the UK-based Kalrock Capital, announced Monday that the airline will resume operations in first quarter of next year, with the first flight to operate between New Delhi and Mumbai.

https://indianexpress.com/article/explained/jet-airways-relaunch-explained-aircraft-services-employees-7505836/

Committee of creditors’ resolution plan irrevocable: SC

In an important judgment in the insolvency and bankruptcy field, the Supreme Court on Monday ruled that a ‘resolution plan’ for stressed assets becomes irrevocable once approved by the Committee of Creditors (CoCs) and submitted to the adjudicatory authority under the Insolvency and Bankruptcy Code (IBC).

https://timesofindia.indiatimes.com/business/india-business/committee-of-creditors-resolution-plan-irrevocable-sc/articleshow/86187060.cms

Date: 13.09.2021

Govt appoints 31 members at NCLT, ITAT

The government has appointed 31 people as judicial, technical and accountant members at the NCLT and the ITAT, amid the Supreme Court flagging concerns about vacancies at various tribunals.

https://economictimes.indiatimes.com/news/economy/policy/govt-appoints-31-members-at-nclt-itat/articleshow/86136351.cms

Are creditors pushing Regen Powertech into ReNew Power’s hands?

The Committee of Creditors of the defunct wind turbine manufacturer, Regen Powertech Pvt Ltd, is opposing moves for fresh joint bids for the company along with a wholly-owned subsidiary, Regen Powertech Infrastructure Services Ltd, even though the bidders say a joint bid might fetch a higher value.

https://www.thehindubusinessline.com/companies/are-creditors-pushing-regen-powertech-into-renew-powers-hands/article36417598.ece

Siliguri-based hotelier moves SC against Oyo for unfair practices

A Siliguri-based hotelier has challenged a National Company Law Appellate Tribunal (NCLAT) ruling that closed insolvency proceedings against and one of its units, in the Supreme Court.

https://www.business-standard.com/article/companies/siliguri-based-hotelier-moves-sc-against-oyo-for-unfair-practices-121091200902_1.html

Supertech home buyers jittery after SC order on demolition of high-rise apartment complex

On August 31, the Supreme Court ordered demolition of the twin 40-storey towers of Supertech’s Emerald Court project in Noida here for violation of building by-laws.

https://www.financialexpress.com/industry/supertech-home-buyers-jittery-after-sc-order-on-demolition-of-high-rise-apartment-complex/2328776/

Srei Infra mulls deleveraging balance sheet, stepping up recoveries to reduce stress on books

The company’s board gave an approval to raise up to Rs 2,500 crore through various means, including qualified institutional placement.

https://www.financialexpress.com/industry/srei-infra-mulls-deleveraging-balance-sheet-stepping-up-recoveries-to-reduce-stress-on-books/2328642/

Date: 12.09.2021

NCLAT admits Dhoot's petition against Anil Agarwal's Twin Star takeover bid

he National Company Law Appellate Tribunal (NCLAT) has admitted the petition filed by former Videocon group Chairman and Managing Director Venugopal Dhoot challenging the earlier order of the insolvency court NCLT approving Rs 2,962 crore takeover bid for its 13 group companies by Anil Agarwal’s Twin Star Technologies.

https://www.business-standard.com/article/companies/nclat-admits-dhoot-s-petition-against-anil-agarwal-s-twin-star-takeover-bid-121091100615_1.html

Centre clears appointments to NCLT, Income Tax Appellate Tribunal

The Supreme Court had expressed dissatisfaction over the way the Centre has not appointed the Tribunal members and slammed it
The Centre has approved the proposal for the appointment of 18 members to the NCLT.

https://www.livemint.com/news/india/centre-clears-appointments-to-nclt-income-tax-appellate-tribunal-11631404273848.html

DHFL insolvency case: Here’s why RBI’s IBC route didn’t work well for the lender

he Reserve Bank of India (RBI) took control of DHFL by appointing an administrator and took the company to Insolvency and Bankruptcy Code (IBC) process, perhaps the first for a non-banking finance company (NBFC), despite all the drawbacks in the IBC process. 

https://zeenews.india.com/companies/dhfl-insolvency-case-here-s-why-rbi-s-ibc-route-didn-t-work-well-for-the-lender-2393035.html

Date: 11.09.2021

Amazon, Future group hail SC decision to stay proceedings

All eyes now on the Singapore arbitrator’s final order
Both Amazon and Future group welcomed the decision by the Supreme Court to stay proceedings related to the Rs. 25,000-crore Reliance-Future Retail deal.

https://www.thehindubusinessline.com/companies/amazon-future-group-hail-sc-decision-to-stay-proceedings/article36387784.ece

30 years on, economic reforms have paid off

But the country now faces fresh challenges, especially in the banking and social sectors, which need to be tackled quickly.

https://www.thehindubusinessline.com/opinion/30-years-on-economic-reforms-have-paid-off/article36386547.ece

Jet Airways relaunch in jeopardy; B777 sold for $9mn

The attempt to rescue and relaunch Jet Airways (JAI, Mumbai Int’l) is likely to be prolonged, or even jeopardised, as the airline faces fresh litigation. Meanwhile, Dutch administrators have sold one of the carrier’s Boeing widebodies for USD9 million, a monitoring committee official revealed.

https://www.ch-aviation.com/portal/news/107660-jet-airways-relaunch-in-jeopardy-b777-sold-for-9mn

IRDAI issues revised trade credit insurance guidelines

In a bid to improve economic stability by addressing trade losses due to payment risks, the insurance regulator, Insurance Regulatory and Development Authority of India (IRDAI), has issued revised guidelines for trade credit insurance hat will come into force from November 1, 2021.

https://timesofindia.indiatimes.com/business/india-business/irdai-issues-revised-trade-credit-insurance-guidelines/articleshow/86079289.cms

Date: 10.09.2021

Time taken to admit a case to NCLT needs to come down, says RBI Governor

Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday said there is scope for improvement in the Insolvency and Bankruptcy Code (IBC) so that the time taken to admit a case to the National Company Law Tribunal (NCLT) is reduced.

https://www.thehindubusinessline.com/money-and-banking/time-taken-to-admit-a-case-to-nclt-needs-to-come-down-says-rbi-governor/article36388456.ece

Supreme Court stays all Delhi HC proceedings in Future-RIL deal: Sebi, CCI, NCLT told not to pass any order for 4 weeks

The judge had also asked for attachment of the assets of Biyani and other directors, and had asked them why they should not be sent to prison for breach of the EA’s interim order.

https://www.financialexpress.com/industry/supreme-court-stays-all-delhi-hc-proceedings-in-future-ril-deal-sebi-cci-nclt-told-not-to-pass-any-order-for-4-weeks/2327490/

This quarter will be better than Q1, says RBI governor Shaktikanta Das

The RBI, he said, is “very serious about anchoring inflation expectations and inflation around the target” of 4%. Sticking to the 9.5% growth projection for 2021-22, the RBI Governor said there is no evidence that asset prices, and to some extent the current high stock prices in India, are actually influenced by excess liquidity.

https://www.financialexpress.com/economy/this-quarter-will-be-better-than-q1-says-rbi-governor-shaktikanta-das/2327580/

Future-Reliance deal: SC stays proceedings in Delhi HC, asks NCLT, CCI, SEBI not to pass final orders

A bench headed by Chief Justice N V Ramana, in a consent order, also directed the statutory authorities like National Company Law Tribunal (NCLT), Competition Commission of India (CCI) and market regulator Sebi not to pass any final order related to the merger deal for next four weeks.

https://www.financialexpress.com/industry/future-reliance-deal-sc-stays-proceedings-in-delhi-hc-asks-nclt-cci-sebi-not-to-pass-final-orders/2327094/

Explained: Why did NCLAT term the Devas-Antrix agreement as fraud

NCLAT has upheld a NCLT order to wind up Devas Multimedia. What was the 2005 deal between Devas Multimedia and Antrix Corporation, and why does the NCLAT order say the agreement was a fraud?

https://indianexpress.com/article/explained/fraud-apparent-in-devas-antrix-deal-7499871/

Future-RIL deal: Supreme Court stays proceedings in Delhi High Court

A Bench headed by Chief Justice of India N V Ramana stayed the proceedings “for the time being” to “balance interest of both the parties”.

https://indianexpress.com/article/business/future-ril-deal-supreme-court-stays-proceedings-in-delhi-high-court-7499870/

Devas Multimedia PMLA case: court allows ED plea to seek documents from Singapore, Mauritius

The ED has alleged that the dubious funds were routed via Singapore and Mauritius to India and later routed back to the US.

https://indianexpress.com/article/cities/bangalore/devas-multimedia-pmla-case-court-allows-ed-plea-to-seek-documents-from-singapore-mauritius-7499738/

Reliance Infra wins $632 million arbitration against Delhi Metro

The verdict is a crucial victory for Ambani as his telecom firms are in bankruptcy and he is contesting a personal insolvency case lodged by the country’s largest lender Reliance Infra shares jumped by the daily limit of 5% after the court order.

https://www.livemint.com/companies/news/reliance-infra-wins-632-million-arbitration-against-delhi-metro-11631166078501.html

Date: 09.09.2021

NCLT admits TVS Automobile plea against KPN to recover Rs.5.27-cr dues

The National Company Law Tribunal (NCLT) on Tuesday admitted an application filed by TVS Automobile Solutions Pvt Ltd against Salem-based KPN Travels, a well-known travels operator in Tamil Nadu, to recover dues of Rs.5.27 crore for supply of various products between August 2017 and December 2019.

https://www.thehindubusinessline.com/companies/nclt-admits-tvs-automobile-plea-against-kpn-to-recover-527-cr-dues/article36366727.ece

Watch | 5-year-old IBC has saved 396 companies so far

The realised value of assets outstrips liquidation value, pointing to the Code’s success .

https://www.thehindubusinessline.com/multimedia/video/watch-5-year-old-ibc-has-saved-396-companies-so-far/article36365516.ece

Reliance Retail contributes 26 pc of Future Consumer’s FY21 sales; becomes 2nd-largest customer

While sharing the details of NCLT, FCL said: “NCLT has heard the application relating to the Scheme and the intervention application filed by Amazon and has reserved the order on the said application filed by Amazon”.

https://www.financialexpress.com/industry/reliance-retail-contributes-26-pc-of-future-consumers-fy21-sales-becomes-2nd-largest-customer/2326496/

Court rejects ED plea to split trial of PMLA case against start-up Devas Multimedia

A plea by the Enforcement Directorate (ED) to split the trial into the alleged money laundering by a Bengaluru start-up firm Devas Multimedia Pvt Ltd – following a failed satellite deal with Indian government entities – was rejected by a special court in Bengaluru on account of the central agency failing to issue summons to a US-based official of the firm and a US subsidiary.

https://indianexpress.com/article/cities/bangalore/court-rejects-ed-plea-to-split-trial-of-pmla-case-against-start-up-devas-multimedia-7497309/

NCLAT dismisses Devas Multimedia's plea against its winding up

The National Company Law Appellate Tribunal (NCLAT) on Wednesday dismissed a petition filed by Devas Multimedia challenging an order of the NCLT to wind up the company.

https://www.livemint.com/companies/news/nclat-dismisses-devas-multimedia-s-plea-against-its-winding-up-11631122809643.html

Manufacturing, construction, real estate firms bear brunt of bankruptcy action

Manufacturing, construction and real estate companies together accounted for seven out of every 10 companies ending up in bankruptcy courts, official data showed, indicating the pain points in the economy. According to figures from the Insolvency and Bankruptcy Board of India (IBBI), 71% of the over 4,500 businesses in bankruptcy tribunals at the end of June were from these three sectors, with trade, transport, and hotels making up the rest.

https://www.livemint.com/news/india/manufacturing-construction-real-estate-firms-bear-brunt-of-bankruptcy-action-11631103467189.html

Insolvency resolution pace slows by 45% in Q1

The pandemic and a shortage of members in the National Company Law Tribunal (NCLT) has Slowed insolvency resolution by over 45% with cases taking nearly 593 days during the June quarter, latest data showed.

https://timesofindia.indiatimes.com/business/india-business/insolvency-resolution-pace-slows-by-45-in-q1/articleshow/86025205.cms

Date: 08.09.2021

Videocon Industries case: NCLAT adjourns hearing; stay on resolution plan to continue till September 20

The National Company Law Appellate Tribunal (NCLAT) on Tuesday adjourned till September 20 the hearing on a batch of petitions challenging the approval for the takeover of bankrupt-Videocon Industries by Anil Agarwal’s Twin Star Technologies.

IBC @ 5 plays saviour to 396 corporates

Realised value of assets outstrips liquidation value, pointing to the Code’s success

https://www.thehindubusinessline.com/economy/ibc-5-plays-saviour-to-396-corporates/article36346295.ece

CDPQ becomes one of the sponsors of Edelweiss ARC

CDPQ Private Equity Asia has become one of the sponsors of Edelweiss Asset Reconstruction Company with a 20 per cent stake in it. This is post the conversion of 3.32 crore Compulsorily Convertible Preference Shares (CCPS) held by CDPQ into 5.26 crore equity shares of ₹10 each of Edelweiss ARC, valued at about ₹97.25 each, on receipt of approval from the Reserve Bank of India.

McLeod Russel: NCLT allows withdrawal of CIRP after promoter-creditor settlement

Following the tribunal’s August 6 insolvency commencement order, Aditya Khaitan, promoter of the tea company, had appealed to the National Company Law Appellate Tribunal (NCLAT) for a stay on the CIRP initiation. NCLAT, however, hadn’t granted a stay but admitted the plea.

https://www.financialexpress.com/industry/mcleod-russel-nclt-allows-withdrawal-of-cirp-after-promoter-creditor-settlement/2325999/

Videocon Industries case: NCLAT adjourns hearing; stay on resolution plan to continue till Sep 20

Through an interim order on July 19, the appellate tribunal had stayed the implementation of the resolution plan for Rs 2,962.02 crore-takeover of 13 Videocon group companies.

https://www.financialexpress.com/industry/videocon-industries-case-nclat-adjourns-hearing-stay-on-resolution-plan-to-continue-till-sep-20/2325909/

Listen to Supreme Court on Tribunals Act

Minimum-age for tribunal membership and short tenures will be a hurdle for tribunals in acquiring the needed talent

https://www.financialexpress.com/opinion/listen-to-supreme-court-on-tribunals-act/2325954/

Bankrupting reform: Vacancies in NCLT are undermining IBC. GoI needs to fill them soon

The Insolvency and Bankruptcy Code (IBC) was enacted in May 2016. It was rightly hailed as a landmark economic reform that would simultaneously lower exit barriers for firms and lending risks for financial intermediaries. IBC’s efficacy relies on a set of institutions that combine seamlessly to deliver. This aspect was foregrounded recently when the Supreme Court made its displeasure known in a hearing on the Tribunal Reform Act and vacancies across tribunals. Specifically, it brought the state of two key IBC institutions, National Company Law Tribunal (NCLT) and its appellate body, NCLAT, into focus.

https://timesofindia.indiatimes.com/blogs/toi-editorials/bankrupting-reform-vacancies-in-nclt-are-undermining-ibc-goi-needs-to-fill-them-soon/

NCLT members’ absence may affect IBC reform

Date: 07.09.2021

IL&FS moves SC against show-cause notice by Sebi

IL&FS Financial Services has moved the Supreme Court against a show-cause notice issued by market regulator Securities and Exchange Board of India. At the heart of the controversy is whether Sebi has the powers to initiate regulatory action against entities placed under moratorium as per Insolvency Bankruptcy Code (IBC).
Read more at:
https://economictimes.indiatimes.com/markets/stocks/news/ilfs-moves-sc-against-show-cause-notice-by-sebi/articleshow/85995063.cms?

DHFL: SC asks NCLAT to wrap up 63 Moons’ appeal against Piramal Group in 2 months

The Supreme Court has directed the National Company Law Appellate Tribunal (NCLAT) to complete the hearing of the appeal filed by 63 Moons Technologies against the Piramal Group’s resolution plan for mortgage financier Dewan Housing Finance Corporation Ltd (DHFL), within two months.

https://www.thehindubusinessline.com/money-and-banking/dhfl-sc-asks-nclat-to-wrap-up-63-moons-appeal-against-piramal-group-in-2-months/article36325862.ece

Dutch firm Van Oord takes Dredging Corp to NCLT over Rs.93.12 crore unpaid dues

The unpaid dues relate to a sub-contracting deal between DCI and Van Oord at JNPT. Dredging contractor Van Oord India Pvt Ltd has filed a petition in the National Company Law Tribunal (NCLT) seeking to recover unpaid dues.

https://www.thehindubusinessline.com/economy/logistics/dutch-firm-van-oord-takes-dredging-corp-to-nclt-to-recover-unpaid-dues/article36301803.ece

Hearing in Siva Industries’ liquidation case deferred

The appeal filed by serial entrepreneur C Sivasankaran, promoter of Siva Industries, in the National Company Law Appellate Tribunal (NCLAT), Chennai, against the recent order of the National Company Law Tribunal (NCLT) Chennai, on the company’s liquidation could not be heard on Monday as the Technical Member recused himself from the case.

https://www.thehindubusinessline.com/companies/hearing-in-siva-industries-liquidation-case-deferred/article36322855.ece

Nearly 47% closed cases under IBC in liquidation till June, says IBBI

Nearly 47 per cent or 1,349 cases closed under the insolvency law ended up in liquidation till the end of June this year but economic value in majority of the cases had eroded even before commencement of the corporate insolvency resolution process, according to IBBI.

https://www.business-standard.com/article/companies/nearly-47-closed-cases-under-ibc-in-liquidation-till-june-says-ibbi-121090601390_1.html

IDBI Bank-led consortium seeks EoIs to sell exposure to IVRCL road asset

IVRCL was among the companies named by the Reserve Bank of India (RBI) in 2017 in its second list of bad assets to be resolved under the insolvency code.

https://www.financialexpress.com/industry/banking-finance/idbi-bank-led-consortium-seeks-eois-to-sell-exposure-to-ivrcl-road-asset/2325270/

IBC: New code for CoCs to bring in discipline, say analysts

However, care must be taken to ensure that unscrupulous elements and defaulting promoters don’t get to delay resolution by resorting to frivolous litigations that question the CoC’s compliance, they added.

https://www.financialexpress.com/economy/ibc-new-code-for-cocs-to-bring-in-discipline-say-analysts/2325185/

No takers for Videocon’s energy biz; September 30 new deadline for resolution

Any delay in selling the assets of VOVL, which is engaged in oil and gas extraction through global subsidiary firms, would hold up the entire resolution process of the parent company, Videocon.

https://www.financialexpress.com/industry/no-takers-for-videocons-energy-biz-sept-30-new-deadline-for-resolution/2325208/

SC rejects 63 Moons plea seeking stay in DHFL resolution

63 Moons, which holds NCDs worth over Rs 200 crore issued by DHFL, had challenged the National Company Law Appellate Tribunal’s order that refused to stay the resolution plan. 63 Moons has been saying that the current resolution plan is disappointing for NCD holders.

https://www.financialexpress.com/industry/sc-rejects-63-moons-plea-seeking-stay-in-dhfl-resolution/2325097/

Date: 06.09.2021

Edtech boost: IBBI extends continuing legal education for RPs via online mode till Dec 31

As the menace of Covid-19 pandemic continues with no resolution in sight, the insolvency regulator IBBI has now allowed online delivery of educational course and professional development sessions on Insolvency and Bankruptcy Code (IBC) to continue till December 31 this year.

It has now extended the validity of its 2020 issued guidelines on online delivery of educational course and continuing professional education till December 31, 2021. The validity of these guidelines are due to end on September 30, but now extended till December 31, sources said.

https://www.thehindubusinessline.com/news/edtech-boost-ibbi-extends-continuing-legal-education-for-rps-via-online-mode-till-dec-31/article36317997.ece

No big jump in bankruptcy admissions in June quarter

Admission of bankruptcy cases in the June quarter of FY22 remained low at 126 cases suggesting that the policy steps taken to avoid bankruptcies and the subdued market for distressed assets have prevented a surge in new cases after India lifted a temporary suspension of bankruptcy action towards the end of March. 

https://www.livemint.com/companies/news/no-big-jump-in-bankruptcy-admissions-in-june-quarter-11630934131294.html

Date: 05.09.2021

The LLP Amendment Bill bats for further ‘ease of business’

The Limited Liability Partnership (Amendment) Bill, 2021 was first introduced on the floor of the Rajya Sabha on July 30, 2021 and was passed on August 9, 2021. This is an effort on the part of the government to further promote ease of doing business in India. The Amendment inter alia seeks to de-criminalise certain offences and increase flexibility with regard to compounding of offences.

https://www.thehindubusinessline.com/business-laws/the-llp-amendment-bill-bats-for-further-ease-of-business/article36302197.ece

Another IBC Fix?

The Insolvency and Bankruptcy Board of India (IBBI), which is the regulator established under the 2016 insolvency code, has issued a discussion paper on the corporate insolvency resolution process and invited comment on its suggestions.

https://www.business-standard.com/article/opinion/another-ibc-fix-121090500947_1.html

Why Covid-hit hospitality sector could attract strategic investors, increase deal flow

As the hotel industry is inherently capital intensive in nature with a long gestation period, historically, industry-wide debt levels for the hospitality industry has been high.

https://www.financialexpress.com/industry/why-covid-hit-hospitality-sector-could-attract-strategic-investors-increase-deal-flow/2323407/

Jet: Boeing 777 plane in Dutch custody sold; insolvency process to close now

Jet Airways is facing insolvency proceedings in the Netherlands in response to a complaint, where it was declared bankrupt in response to a complaint by two European creditors.

Not much progress made in resolution of stressed assets: Nirmal Gangwal

Nirmal Gangwal, managing partner at investment banking firm Brescon & Allied Partners, speaks about the challenges with the new bankruptcy regime and possible measures to improve stressed asset resolution

https://www.livemint.com/companies/people/not-much-progress-made-in-resolution-of-stressed-assets-nirmal-gangwal-11630865172543.html

App

Install
×