CORPORATE INSOLVENCY
Key amendments to IBC, companies law likely in winter session
MCA will amend IBC and Companies Act, 2013 to expedite resolutions, reduce compliance burdens, and broaden CSR norms in the winter session. Changes include creditor-led mechanisms, wider pre-pack resolution, and stronger audits. Real estate-specific IBC regime is unlikely. Timely resolutions crucial; 68% of insolvency cases exceed 9 months; corrected timing improves creditor recovery, says Veena Sivaramakrishnan.
IPs spend significant time on issues related to statutory authorities during IBC process: Survey
Insolvency professionals face challenges with statutory authorities and enforcement agencies during the resolution process, as per a survey by IIIPI. Issues include initiation of proceedings against Corporate Debtors during moratorium, and notices for matters pre-CIRP. IPs spend up to 25 per cent of the IBC process timeline on these matters. IIIPI Chairman Ashok Haldia noted difficulties in responding to authorities when records are missing or only past management is accountable.
Supernova insolvency case: NCLAT to wait for lenders' decision on settlement offer from Supertech Realtors
Insolvency appellate tribunal NCLAT on Wednesday said it will wait for the decision of lenders on a revised settlement offer by Supertech Realtors, which is developing a residential apartment, offices, retail and luxury hotels at its Supernova project. NCLAT also directed the Interim Resolution Professional (IRP) not to constitute a Committee of Creditors. However, it said the construction work for the project would be continued under the supervision of IRP.
Wipro asks NCLT to junk Ivalua's insolvency plea
Wipro disputes Ivalua's insolvency plea over $100,000 unpaid dues for unfulfilled cloud services, seeking dismissal at NCLT.
NCLT rejects housing society's plea to exclude land from HDIL's insolvency process
HDIL faces insolvency with liabilities exceeding Rs 8,138 crores, including debts to secured and unsecured financial creditors, and homeowners. The real estate sector contributes significantly to companies under CIRP, with about 15% witnessing revival post-resolution.
Essel Group company Shirpur Gold admitted for insolvency
To secure a ₹65-crore loan, SGRL had given an undertaking to Industrial Finance Corporation of India (IFCI) that it would maintain its own excess shares besides those of Zee Media, Zee Entertainment (both promoted by Essel Group) and Dish TV India (which is under Chandra's younger brother) to the extent of ₹32.50 crore. The outstanding dues include a principal amount of ₹65 crore along with accumulated interest of ₹27 crore up to October 14, 2021.
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IBC helps personal guarantors resolve financial stress: MCA
The Insolvency and Bankruptcy Code (IBC) provides opportunities for defaulting firms and personal guarantors to restructure debts. The Ministry of Corporate Affairs (MCA) emphasized the importance of trust in financial transactions and highlighted the benefits of the IBC for resolving financial difficulties. Data from the Insolvency and Bankruptcy Board of India (IBBI) shows a high number of applications for the insolvency resolution process of personal guarantors to corporate debtors.
IBBI proposes amendments to insolvency rules; seeks public comments
IBBI proposes amendments to enhance efficiency and reduce costs in the Insolvency Resolution Process for Corporates, seeking stakeholder inputs by July 10.
Fortis, Apollo, Medanta, and Max lead the charge in bidding war for Jaypee Healthcare
Fortis Healthcare, Apollo Hospitals, Medanta, and Max Healthcare are among companies interested in acquiring Jaypee Healthcare, a subsidiary of Jaypee Infratech in Noida with a total debt of about Rs 1,000 crore.
Jaypee Infratech appoints Devang Pravin Patel as CFO; to delist company shares from bourses
Suraksha Group takes control of Jaypee Infratech Ltd, appoints Devang Pravin Patel as CFO, and plans to delist shares from stock exchanges.
IBBI proposes compliance procedures for IPs, seeks stakeholder feedback
The Insolvency Bankruptcy Board of India (IBBI) has proposed changes to the corporate insolvency resolution process (CIRP) forms and compliance framework to reduce compliance burden on insolvency professionals. The changes aim to reduce the amount of information and data required, enhance efficiency, and reduce redundancy.
Regulator plans to ease compliance burden on insolvency professionals
The bankruptcy regulator, IBBI, aims to reduce the compliance burden on insolvency professionals overseeing stressed asset resolution without compromising accuracy. It plans to streamline reporting, deadlines, and centralize information on a single website for easier access by stakeholders.
Jaiprakash Associates Insolvency: NCLAT asks ICICI to consider one-time settlement proposal
NCLAT issues notice to ICICI Bank over Jaiprakash Associates Ltd's one-time settlement proposal, opposed by creditors. JAL aims to pay debt of over Rs 26,000 crore within 18 weeks if OTS is accepted.
Suspended board of Jaiprakash Associates moves NCLAT, challenges insolvency proceedings
Jaiprakash Associates' suspended board challenged NCLT's order for insolvency proceedings, with the matter listed before NCLAT. NCLT admitted ICICI Bank's plea on June 3, appointing Bhuvan Madan as Interim Resolution Professional. Despite JAL's claims of liquidity crunch and asset-rich status, NCLT upheld the insolvency decision. The tribunal also dismissed JAL's objections regarding debt restructuring and asset transfers.
NCLT initiates insolvency against Himalayan Mineral Water
The National Company Law Tribunal (NCLT) has approved insolvency proceedings against Himalayan Mineral Waters due to defaulting on a corporate guarantee to Jammu & Kashmir Bank for LeeL Electricals. The tribunal appointed Bhoopesh Gupta as the interim resolution professional. J&K Bank claimed a default of Rs 50 crore, leading to this decision.
Dispute with Raymach Tech settled: SpiceJet to NCLT
SpiceJet Ltd settled a dispute with Raymach Technologies over ₹2.7 crore worth of unpaid dues at the National Company Law Tribunal.
IBBI issues new guidelines to streamline process of appointing IPs as resolution professionals
The Insolvency and Bankruptcy Board of India (IBBI) issues new guidelines to streamline the appointment of insolvency professionals (IPs) as interim resolution professionals, liquidators, and bankruptcy trustees, effective from July 1, 2024.
NCLT dismisses developer’s intervention plea at pre-admission stage
The National Company Law Tribunal dismissed an intervention petition by Surya Landmark Developers regarding exclusion of its prime 0.5-acre land parcel in Mumbai's Lower Parel from insolvency proceedings initiated by ACRE.
NCLT admits personal insolvency plea against Rajkumar Dhoot of Videocon
The NCLT in Mumbai has admitted SBI's application against Rajkumar Dhoot of Videocon Group for a Rs 5,353-crore default by Videocon Industries, where Dhoot was a personal guarantor.
Relief for 20,000 homebuyers! Suraksha Group finally takes over Jaypee Infratech via insolvency process
According to a regulatory filing by Jaypee Infratech on Wednesday, Suraksha Group informed the IMC (Implementation and Monitoring Committee) that May 24, 2024, i.e., the date of the NCLAT order should be treated as the 'Approval Date' as defined in the approved resolution plan.
Bankruptcy court admits ICICI Bank's insolvency resolution plea against Jaiprakash Associates
Admission affects deal with Dalmia Bharat Group for Rs 5,666 crore. Case represented at NCLT.
IBC rescued 3,171 distressed companies in eight years: Sitharaman
Finance minister Nirmala Sitharaman on Thursday said the Insolvency and Bankruptcy Code (IBC) has rescued 3,171 distressed companies and assisted in the shutdown of unviable firms since its introduction eight years ago. This is a marked improvement from the resolution of stress in less than 3,500 firms under the erstwhile Board of Industrial and Financial Reconstruction (BIFR) regime in 30 years, she said, pitching the IBC as a landmark piece of legislation.
Timely rescue of firms pushes IBC recovery to 49%
Creditors in India have been able to recover nearly half of their claims under the Insolvency and Bankruptcy Code (IBC) when the resolution is completed within the 330-day deadline. However, delays have lowered the proportion of money recovered. The IBC was introduced eight years ago and has been the most challenging to address due to litigation-related holdups. Experts have called for amendments to the IBC to address this issue.
NCLT admits Srei's insolvency plea against Supreme Infrastructure BOT
The National Company Law Tribunal (NCLT) has accepted Srei Infrastructure Finance's request to commence a corporate insolvency resolution process (CIRP) against Supreme Infrastructure BOT due to its failure to repay a loan. Srei Infrastructure Finance had provided a term loan of Rs 150 crore to Supreme Infrastructure BOT for a duration of five years, earmarked for infrastructure projects.
NCLAT upholds NCLT order on Jaypee Infra; asks Suraksha to pay additional Rs 1,300 crore
NCLAT affirmed Suraksha Realty's acquisition bid for Jaypee Infratech but mandated an extra Rs 1,300 crore as farmers' compensation. The decision aimed to expedite the resolution plan, addressing concerns of stakeholders, including homebuyers and YEIDA. Suraksha pledged timely payment, aiming to resolve the debt-ridden firm's fate.
Pre-pack insolvency a success for five companies
The Pre-packaged Insolvency Resolution Process (PPIRP) settled operational creditors' claims in five cases. Introduced under the Insolvency and Bankruptcy Code (IBC) in August 2021, it involves debtor-creditor negotiation before formal insolvency. Newsletter of the Insolvency and Bankruptcy Board of India (IBBI) reported 25% realisation.
GoFirst engine lessors to wait further; NCLT says it will study Delhi HC order
National Company Law Tribunal to decide on engine lessors for Go First after studying Delhi High Court order allowing lessors to repossess aircraft. Ministry of Corporate Affairs claims aircraft not under Insolvency and Bankruptcy Code. Tribunal grants 10 days for written arguments in land lease dispute with Mack Star Marketing Pvt Ltd.
RBI looks at asset reconstruction companies amid a flood of allegations
India's central bank is set to hold a meeting with top management from asset reconstruction companies (ARCs) to discuss corporate governance and stressed-asset resolutions. This comes amidst concerns about potential back-door entry by defaulting promoters. The meeting, scheduled for May 17 in Mumbai, will see the participation of all 27 registered ARCs, along with RBI executives. Allegations have arisen that ARCs may strike deals with defaulting promoters, allowing them entry at a steep discount, bypassing regulations.
NCLT approves Sapphire Media's acquisition of Big 92.7 FM
NCLT Mumbai approved Sapphire Media's plan for Big 92.7 FM, paying Rs. 261 crore to creditors. The resolution process began in February 2023 under the Insolvency and Bankruptcy Code, with a creditors' committee approving the plan on November 11, 2023.
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