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Bankruptcy Laws
JSW Energy has secured the approval of the creditors of Raigarh Champa Rail Infrastructure for its proposal to acquire the debt-laden entity currently under the insolvency process. JSW Energy acquired KSK Mahanadi Power Company Ltd (KMPCL), a 3,600 MW thermal power plant in Chhattisgarh, for Rs 16,084 crore through the insolvency process, in March this year. After the KMPCL acquisition, JSW Energy held significant indirect ownership in Raigarh Champa Rail Infrastructure Private Limited (RCRIPL), which is the sole provider of rail infrastructure for coal transportation services to KMPCL. In an exchange filing on Thursday, JSW Energy said, "We wish to inform that the resolution plan submitted by the company for RCRIPL under the corporate insolvency resolution process has been approved by the Committee of Creditors". JSW Energy said it received a Letter of Intent from the Resolution Professional on Wednesday. The closure of the transaction will be subject to the receipt of approval f
Resolution of most of the stressed assets under the insolvency law missed their timelines amid a shortage of staff at the National Company Law Tribunal (NCLT) and the appellate tribunal this year, which also saw aviation players seeking solace in insolvency provisions albeit without much success. As the Insolvency and Bankruptcy Code (IBC) timelines stretched well beyond their specified limits, the companies undergoing the resolution process saw an erosion in the value of their assets. As of September this year, creditors have realised Rs 3.16 lakh crore by way of resolutions under the IBC since it came into force in December 2016, as per data from the Insolvency and Bankruptcy Board of India (IBBI). In 2024, NCLT and the National Company Law Appellate Tribunal (NCLAT) are expected to conclude important Corporate Insolvency Resolution Processes (CIRPs), including that of Future Retail, Go First and Reliance Capital. The latest data showed that 67 per cent of the ongoing CIRPs misse
Introduction of a focused bankruptcy law has helped improve the credit culture in India, but the last few years have seen a decline in recoveries and the resolution timelines getting prolonged, Crisil Ratings on Friday. 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. At the same time, the average resolution time has increased from 324 days to 653 days, versus the stipulated 330 days, it said. The IBC has helped in resolving debt worth Rs 3.16 lakh crore stuck in 808 cases in the past seven years, the leading credit rating agency said. Its senior director Mohit Makhija said the IBC is "the most potent code" in India's corporate loan history, which has brought a "behavioural change" in borrowers. "The fear of losing companies has led to over Rs 9 lakh crore of filed debt being settled before the cases arrived at the IBC doorstep fo