OPERATIONAL CREDITORS
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.
NCLT asks Sadbhav Engg CEO to settle creditor dues
The direction came after the company's chief executive officer appeared before the tribunal and said the company had proposed a restructuring package to all the financial creditors, and was looking to resolve the issue.
Amid delays in clearing dues, Vodafone Idea confident of support from operational creditors
Vodafone Idea (Vi) remains optimistic that its operational creditors, including network equipment suppliers Nokia and Ericsson, as well as tower vendor Indus, will maintain their support despite payment delays. Vi expects its forthcoming 4G and 5G initiatives to generate new business opportunities for these partners. According to Bharti Airtel chairman Sunil Mittal, Vi must settle all outstanding dues with Indus to continue using the tower company’s infrastructure for future services like 5G.
MEP Infrastructure Developers to seek settlement with lenders under IBC: Jayant Mhaiskar
MEP Infrastructure Developers (MIDL) plans to submit a settlement proposal under Section 12A of the Insolvency and Bankruptcy Code (IBC) to resolve its debt issues with lenders. The chairman, Jayant Mhaiskar, aims to seek a settlement before the company faces bankruptcy, highlighting the importance of the IBC provision in creditor settlements.
Evergrande liquidation law firm probing PwC, others for potential claims
Lawyers for China Evergrande Group's liquidators are investigating its former auditor, PwC, and other service providers to recover losses for creditors. Ordered into liquidation in January due to defaulting on $23 billion in offshore debt, Evergrande's extensive $300 billion liabilities make its case a potential model for future Chinese corporate liquidations. The probe focuses on potential wrongdoing that led to Evergrande's financial collapse.
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.
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Byju’s lenders petition to put subsidiaries in bankruptcy in the US
Creditors led by HPS Investment Partners filed involuntary Chapter 11 cases in Delaware against Neuron Fuel Inc., Epic! Creations Inc. and Tangible Play Inc. on Wednesday. All three were once affiliated with Byju’s Alpha, a unit of the once high-flying startup that was put into bankruptcy earlier this year after defaulting on $1.2 billion of debt.
Ludhiana toll road lenders approve NARCL's Rs 270 cr offer to settle debt
The Ludhiana Toll Road project, initially planned to be completed by 2014, became a non-performing loan due to delays. PNB is the lead lender, with other creditors including Central Bank and Indian Overseas Bank.
NCLT sees surge in voluntary liquidation as promoters seeking clean slate
Voluntary liquidation is becoming a preferred choice for promoters to close unviable businesses and avoid losses and compliance costs. Most companies opt for liquidation due to inactive operations (69%) or commercial inviability (17%). This trend reflects pragmatic corporate decision-making and regulatory compliance evolution, despite some promoters exploiting it to evade creditors.
GoAir 'temporarily' loses rights and slots to operate international flights to IndiGo and other companies
GoAir has temporarily lost its slots and foreign bilateral rights to other airlines like Air India and IndiGo amidst diminishing chances of revival. In order for airlines from one country to operate international flights to another country, a bilateral air services agreement must be negotiated and signed between the two sides. This agreement dictates the number of flights or seats per week that can be permitted to fly from one country to the other.
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.
NCLT rejects JM Financial Asset Reconstruction's plea in Arch Pharmalabs case...
The National Company Law Tribunal dismissed JM Financial Asset Reconstruction's application to intervene in an insolvency resolution application filed by Bank of Baroda against Arch Pharmalabs.
NCLT asks SpiceJet to file reply to Aircastle's petition in 15 days
The National Company Law Tribunal (NCLT) has directed SpiceJet to respond within 15 days to Aircastle's insolvency petition. The tribunal will examine if the power of attorney holder can represent an operational creditor in a corporate insolvency resolution process (CIRP) petition. SpiceJet's counsel questioned the maintainability of the petition, arguing that multiple petitions against the same corporate debtor are not allowed under the Insolvency and Bankruptcy Code, 2016.
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.
Go First revival chance fades as lenders, bidders spar on valuation
A Delhi High Court order on Friday allowing lessors to repossess their aircraft has further dented hopes of reviving Go First, they said. Ajay Singh, promoter of SpiceJet, and an entity owned by Nishant Pitti-owner of online travel portal EaseMyTrip had jointly bid for the airline. The second bid is from Sharjah-based Sky One.
NCLT approves Chemhub's resolution plan for Pancard Clubs
Chemhub Tradelink's plan for Pancard Clubs, approved by NCLT, involves Rs 8,900 crore debt claims with 8% recovery for creditors. The resolution process included bidders like Ashdan Properties and Vijay K. Oswal, with oversight from Deloitte and representation by Nausher Kohli.
NCLT adjourns Siti Networks bankruptcy hearing to April 3
NCLT Mumbai bench adjourned Siti Networks' insolvency hearing to April 3. Rohit Mehra, suspended board of directors, NCLAT intervention, financial and operational creditors claims, including Zee Entertainment Enterprises, were crucial in the process.
Wilmington moves NCLAT in SpiceJet insolvency case
Wilmington Trust SP Services contended that as a trustee, it could file an insolvency petition on behalf of operational creditors, which was the ground raised by NCLT, Delhi, to dismiss its petition. Counsel for Wilmington noted that NCLT, Mumbai, had passed orders in the past where it had allowed the trustee to file an insolvency petition. Wilmington filed an insolvency petition in NCLT, Delhi, in June last year over a debt of $11.2 million for leasing an aircraft to SpiceJet.
Vedanta's plan to demerge businesses may face hurdles from shareholders, creditors: Report
Vedanta's plan to demerge its businesses into separate entities may encounter challenges from its minority shareholders and creditors, according to a report by Credit Sights, a FitchSolutions Company. The mining conglomerate announced the demerger of five key businesses, including aluminium, oil and gas, and steel, on September 29.
NCLAT directs Jet ownership transfer to Jalan Kalrock team
The National Company Appellate Tribunal (NCLAT) directed the transfer of Jet Airways' ownership to Jalan Kalrock Consortium (JKC) within 90 days. JKC must obtain an air operator's certificate. The tribunal allowed the adjustment of the performance bank guarantee towards the first tranche payment. Payments to workmen, employees, and creditors will be made as per the resolution plan.
NCLT rejects resolution plan for Cambay Hotels operator
“The resolution plan approved by CoC (committee of creditors) has not been done with a process that can be approved by this adjudicating authority as it lacked a due and transparent process of examining each application on its merits,” the division bench of judicial member Chitra Hankare and technical member Velamur G. Venkata Chalapathy said in its order on March 1.
Mediation to lower burden for NCLTs & speed up resolutions, say lawyers
Lawyers believe mediation will reduce burden on NCLTs, resolve disputes between operational creditors and defaulting companies faster, especially benefiting manufacturing and real estate sectors. An expert committee recommended voluntary mediation framework under IBC, settling 26,000 applications with Rs 9.33 lakh crore debt before admission at NCLT.
NCLAT rejects plea to initiate insolvency proceedings against Aditya Birla Fashion
However, the NCLAT also said, "We do not agree with the finding of the Adjudicating Authority that the Section 9 application was time-barred and hit by limitation". Meanwhile, the appellate tribunal said the operational creditor has the liberty to seek remedy of its contractual disputes before any other appropriate forum.
Chinese developer Evergrande risking liquidation if creditors veto its plan for handling huge debts
Evergrande is one of the biggest developers to have defaulted on its debts. But others including Country Garden, China's largest real estate developer, have also run into trouble, their predicaments rippling through financial systems in and outside China.
Quickest way to get defaulters to pay up? The threat of insolvency
In absolute terms, the default amount involved in the withdrawn cases was almost three times the Rs 3.16 lakh crore realised through the resolution of a total of 808 insolvent firms under the IBC until September 2023. The recovery from these 808 rescued firms constituted 31.85% of the creditors' claims that were endorsed by the NCLT.
Byju’s creditors onboard Kroll to ‘safeguard’ assets including Great Learning
The appointment was made on behalf of the secured creditors of Byju’s Alpha, as part of the lenders’ exercise of their security rights following defaults by the company, said a statement from Kroll.
Resolution professionals can't challenge tribunal order, says Supreme Court
The Supreme Court has ruled that resolution professionals (RPs) do not have the authority to file appeals against bankruptcy court decisions since they are considered "neutral" individuals appointed to assist the tribunals. Only parties directly affected, such as the Committee of Creditors (CoC), can file appeals. Legal experts believe this decision will help speed up insolvency resolutions. The court's ruling came in response to an appeal filed by the RP of Regen Powertech, who challenged decisions made by the National Company Law Appellate Tribunal (NCLAT).
Evergrande sold yacht this year, say sources, as creditors sharpen focus on offshore assets
China Evergrande Group has reportedly sold its luxury superyacht, Event, for about $32 million as part of its efforts to sell non-core assets amid its worsening cash crunch. The sale further reduces Evergrande's offshore assets, which could be of concern to its offshore bondholders as the company's debt restructuring plan faces challenges.
Willis Lease Finance not an operational creditor: SpiceJet
The senior counsel appearing for SpiceJet claimed that the lessor was neither the operational creditor nor an assignee to the leases signed between the aircraft company and lessors, and thus had no locus to file a petition. He argued that a holding company or an authorised agent had no right under law to file an insolvency petition
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