Page 16 - Latest Updates on IBC
Partial relief for firms as govt extends IBC suspension for three months
Companies were looking for a six-month extension; suspension doesn't apply to defaults before March 25
 "Partial relief for firms as govt extends IBC suspension for three months")
Govt proposes extending suspension of new bankruptcy filings: Report
The proposal is to extend the halt on new bankruptcy cases for another six months past its currently scheduled ending point this week
 "Govt proposes extending suspension of new bankruptcy filings: Report")
IBC and SARFAESI Act confusion again as RBI takes up Aircel case
How two laws dealing with insolvent companies may work at cross-purpose at times
 "IBC and SARFAESI Act confusion again as RBI takes up Aircel case")
Videocon Industries: Between a long-drawn IBC process and a hard place
The former giant of the Indian corporate world is caught on the shoals of a long-drawn insolvency process even as lenders face the prospect of losing most of their money
 "Videocon Industries: Between a long-drawn IBC process and a hard place")
AGR case: Supreme Court puts spectrum users in the dock on IBC firms' dues
Such telcos should pick up AGR bill, says apex court
 "AGR case: Supreme Court puts spectrum users in the dock on IBC firms' dues")
Suspension of some IBC provisions aimed at rescuing viable companies: Sahoo
IBBI said that some IBC provisions were suspended due to the Covid-19 situation and there is no complete ban or prohibition on lenders with regard to proceedings for corporate defaults
 "Suspension of some IBC provisions aimed at rescuing viable companies: Sahoo")
Insolvency law: IBBI lists out red flags to detect avoidance transactions
Resolution professionals and liquidators can also facilitate claw-back or disgorgement of value, if any, lost through avoidance transactions
Ruchi Soya Industries hit down limit after soaring 3 times in 22 sessions
Market players said the stock is easily prone to manipulation as hardly any shares are with the public
 "Ruchi Soya Industries hit down limit after soaring 3 times in 22 sessions")
President approves ordinance to suspend IBC, offer 6-month relief to firms
Reprieve can be extended up to a year via govt notification; default committed before March 25 not to enjoy benefit
 "President approves ordinance to suspend IBC, offer 6-month relief to firms")
Covid to drag down recoveries from stressed assets by 40% in FY21: Icra
Suspension of new IBC action to impact resolution; lenders may also have to take bigger haircuts
 "Covid to drag down recoveries from stressed assets by 40% in FY21: Icra")
Suspension of IBC can affect resolution efforts and shift focus to recovery
On Wednesday, the Union Cabinet gave approval to the suspension of the IBC for Covid-19-related stress
 "Suspension of IBC can affect resolution efforts and shift focus to recovery")
New-look inter-creditor agreement on the cards as IBC process suspended
The Indian Banks' Association can be expected to begin formal discussions with the wider banking fraternity over the next fortnight
 "New-look inter-creditor agreement on the cards as IBC process suspended")
Both debtors & creditors will be wary of using IBC in short term: M S Sahoo
As the banking system gears up to support businesses in face of defaults due to Covid 19, resolution of stressed assets could be the next big task for system, says M S Sahoo
 "Both debtors & creditors will be wary of using IBC in short term: M S Sahoo")
Best of BS Opinion: The economic fallout, coronavirus outbreak, and more
Here is a summary of Business Standard opinion pieces for the day
 "Best of BS Opinion: The economic fallout, coronavirus outbreak, and more")
Say no to banks
Suspending IBC for an extended period would destroy it
Giving teeth to bankruptcy code
By adopting a few steps many companies that have no alternative but to go to the NCLT to keep themselves from closing down can be saved
 "Giving teeth to bankruptcy code")
Banks want IBC proceedings in all pending cases to be suspended for 2 years
Fall in valuation, lack of demand cited as reasons
 "Banks want IBC proceedings in all pending cases to be suspended for 2 years")
Focus on capital formation policy
It is vital to ensure that the clamour for suspending bankruptcy laws does not translate into reality
Dhanuka Lab implements resolution plan for debt-ridden Orchid Pharma
The resolution plan will fetch the secured lenders around 32.3% recovery
 "Dhanuka Lab implements resolution plan for debt-ridden Orchid Pharma")
GST compliance of companies under IBC: Gaps in the new mechanism
The gaps need to be plugged immediately if this long-standing issue has to be addressed keeping in mind the intent and objectives of IBC, 2016