Page 4 - Latest Updates on IBC
A third of withdrawn insolvency processes fully settled, says IBBI
IBBI said that the credible threat of the code that a company may change hands has changed the behaviour of debtors
 "A third of withdrawn insolvency processes fully settled, says IBBI")
The post-May 2024 dilemma
Even if we have a majority government, economic performance will be sub-optimal without political consensus on reforms
 "The post-May 2024 dilemma")
Economic prospects
Interventions needed to support long-term growth
 "Economic prospects")
Battery maker IBC raises $35 mn to fund manufacturing expansion in India
Company says it is developing products are safe at high temperatures and have a longer life
 "Battery maker IBC raises $35 mn to fund manufacturing expansion in India")
IBC needs further changes for resolution of biz conglomerates: RBI Dy Guv
Swaminathan J, deputy governor, RBI said that very often business conglomerates have intricate corporate structure with inter-connected related-party relationships that add to the complexity
 "IBC needs further changes for resolution of biz conglomerates: RBI Dy Guv")
Resolve this: How India's insolvency process drags on, erodes asset value
Litigation tactics of corporate debtors and poor judicial infrastructure among reasons for delay
 "Resolve this: How India's insolvency process drags on, erodes asset value")
Best of BS Opinion: Power for all, Mutual funds' growing heft & more
Here is the best of Business Standard's opinion pieces for today
 "Best of BS Opinion: Power for all, Mutual funds' growing heft & more")
A performance appraisal of IBC
Despite potential biases introduced by the Dosa approach in analysing its efficacy, the law appears successful in delivering on its key parameters
Learnings from IBC suggest need for 'some course correction': RBI chief Das
The IBC, which came into force in 2016, is a key legislation aimed at resolving stressed in a time-bound and market-linked manner
 "Learnings from IBC suggest need for 'some course correction': RBI chief Das")
IBC yet to address resolution for insolvencies of group companies
Group insolvency remains an ill-defined area in the IBC. Here's why it needs a clear framework
 "IBC yet to address resolution for insolvencies of group companies")
IBBI forms panel of 787 professionals to expedite resolution process
This move by the insolvency regulator aims to avoid delays and preserve asset value amid rising stressed cases
 "IBBI forms panel of 787 professionals to expedite resolution process")
MCA planning new portal to streamline IBC cases, boost transparency
The IBBI would also be able to keep track of the happenings in the NCLT through this portal
 "MCA planning new portal to streamline IBC cases, boost transparency")
Government may implement 2-month asset freeze of airlines under insolvency
To prevent immediate repossession of aircraft by lessors after default, the government is contemplating a two-month moratorium rule for the aviation sector
 "Government may implement 2-month asset freeze of airlines under insolvency")
Lanco Amarkantak Power creditors to vote on Adani Power's Rs 4,100 cr bid
An unsolicited bid of Rs 3,650 crore was submitted by Adani Power, which was later improved to Rs 4,100 crore
IBC has been revolutionary, but it's time for improvement and tweaks
Insolvency cases remain pending for months and years, deterring stakeholders. It is imperative that litigation be reduced
 "IBC has been revolutionary, but it's time for improvement and tweaks")
IBC recoveries declining, resolution timelines getting prolonged: Crisil
In a note to observe the seven years of the Insolvency and Bankruptcy Code (IBC), the rating agency said the recovery rates have fallen to 32 per cent in September 2023, from 43 per cent in March 2019
 "IBC recoveries declining, resolution timelines getting prolonged: Crisil")
Manufacturing tops insolvency cases, real estate a close second
The recovery rate from personal guarantors currently stands at 5.22%. This rate is anticipated to rise following the Supreme Court's recent ruling affirming the constitutionality of the IBC provisions
 "Manufacturing tops insolvency cases, real estate a close second")
Liquidation share in insolvency cases on the decline, shows IBBI data
Experts attribute it to initial economic conditions of companies entering CIRP
 "Liquidation share in insolvency cases on the decline, shows IBBI data")
Adani, JSW Cement, and ArcelorMittal eyeing Vadraj Cement in IBC Sale
The Bombay High Court ordered the winding up of Vadraj Cement in August 2018, leading to the decision to sell the company under the IBC process
 "Adani, JSW Cement, and ArcelorMittal eyeing Vadraj Cement in IBC Sale")
Debt guarantees
Supreme Court has strengthened the IBC framework
 "Debt guarantees")