The National Company Law Tribunal (NCLT) has cleared a repayment proposal for Zee Group founder Subhash Chandra that would allow creditors to recover around ₹6.5 crore against admitted claims of ₹22,006.57 crore. The approval effectively leaves lenders facing a 99.97% haircut, meaning they would recover only about three paise for every ₹100 they are owed. … Read more
India’s insolvency framework could soon see a significant shift, with the proposed amendments to the Insolvency and Bankruptcy Code (IBC) introducing a mechanism that allows certain defaulting promoters to retain control of their companies during the resolution process, The Times of India reported on April 7. The system, according to the report (by Mayur Shetty), … Read more
The Insolvency and Bankruptcy Code (IBC) has so far played a significant role in enhancing India’s ease of doing business, but despite its successes, there are “persistent and systemic challenges” that undermine its optimal performance, the Parliamentary Standing Committee on Finance has said. In its ‘Review of Working of Insolvency and Bankruptcy Code and Emerging … Read more
As per newspaper reports, mobile tower giant Indus Towers (Indus) is learnt to have asked debt-ridden Vodafone Idea (VIL) to clear outstanding dues and pay every month on time for continuity of the business post-November. The step is supposedly taken after the independent directors of Indus raised concerns on the mounting receivables from VIL At … Read more
As per the newspaper reports, debenture holders have approached NCLT invoking insolvency proceeding against Peninsula Land (PL). Plea is due to default by one of the SPVs of PL on it’s payment obligations towards the debenture holders in July 2021. Debenture holders had invoked corporate guarantees worth Rs 117 crore provided by PL. As per … Read more
Company law tribunals have 14 days to admit or reject an insolvency case, but official data shows that not one application was admitted in this period. A discussion paper by the Insolvency and Bankruptcy Board of India lays down the time taken for admission of Section 9 applications (to start insolvency proceedings) in the last … Read more
The Company has missed the last date for payment of Rs 3,494.56 crore to banks and others lenders. Key points to note – The last date for payment was December 31, 2021. The due date was as per the One Time Restructuring (OTR) plan approved by the lenders in April 2021 under an RBI announced … Read more
The engineering procurement and construction (EPC) company that went into liquidation, is set to be acquired by Hyderabad businessman Ponguleti Prasad Reddy along with consortium members for Rs 1200 crore. This would imply a recovery of 8% for lenders. IVRCL was pushed into liquidation after lenders rejected two separate resolution plans submitted by Shankar Sharma … Read more
RBI on October 4, 2021 superseded the struggling NBFC, Srei’s board, appointed an administrator (ex CGM of Bank of Baroda) and intends to shortly put it under the insolvency process (ICBC). Action has covered both Srei Infrastructure Finance and it’s wholly owned subsidiary Srei Equipment finance Ltd. Key points to note – The action came … Read more