Bankruptcy Rules

Two recent developments heighten the constitutional and legislative rationale for bringing this protection into effect

Following the status quo put on BPSL's liquidation, a parliamentary panel has deemed the existing IBC not up to the mark

NCLT has directed for the liquidation of debt-ridden Tulip Hotels, as the tribunal failed to receive any bidder during its insolvency resolution process within the prescribed timeline. On May 16, 2023, the NCLT had directed the initiation of a Corporate Insolvency Resolution Process (CIRP) against Tulip Hotels over a plea filed by Yes Bank, claiming a default of Rs 900 crore for two corporate guarantees issued by it. Tulip Hotels was a corporate guarantor for two loans disbursed by Yes Bank to Cox & Kings and EzeeGo One Travel and Tours Ltd. After they defaulted, the financial creditor Yes Bank invoked the guarantee of Rs 450 crore each given for both loans. However, the RP of Tulip Hotels submitted that during the prescribed timeline of 180 days, no bids (resolution plan) were submitted for Tulip Hotels during the Corporate Insolvency Resolution Process (CIRP) and the Committee of Creditor (CoC) has also passed no for extension of the period. Hence, he was left with no other ...

The development was surprising and in conflict with insolvency proceedings in India

Expresses deep concern about being asked to interfere with proceedings in another country's judicial system

The long-term nature of assets has to be supported by long-term liabilities or there has to be take-out financing. This is starting to happen with the rise in Real Estate Investment Trusts and InvITs

The Insolvency and Bankruptcy Board of India (IBBI) has issued a new set of guidelines to streamline the process for appointing insolvency professionals (IPs) as interim resolution professionals, liquidators, and bankruptcy trustees. Under the new guidelines, issued on June 5, a panel of IPs will be set up, which will be effective from July 1, 2024, to December 31, 2024. The panel will be shared with the National Company Law Tribunal and the Debt Recovery Tribunal (DRT) to avoid administrative delays. The panel will have a validity of six months. To be eligible for inclusion in the panel, the IPs must have no pending disciplinary proceedings or convicted in the last three years by a court of competent jurisdiction. Further, they also hold an authorisation for assignment, which will be valid till the validity of the panel, and submit an expression of interest, along with their consent to act in various capacities. In addition, they should have prior experience in handling assignme

Adam Neumann had submitted a bid of more than $500 million to buy back WeWork, Reuters reported last month citing a person familiar with the matter

The airline has also received a financial bid from Sharjah-based Sky One Airways which is lower than the competing bid, one of the bankers said, without disclosing the amount

The modifications to the IBBI - Bankruptcy Process for Personal Guarantors to Corporate Debtors, Regulations 2019, took effect from January 31

Co-working space provider WeWork Inc. wishes to move forward with filing a bankruptcy sometime in the next week, as reported by The Wall Street Journal

The lessors have so far unsuccessfully argued in Indian courts to get their planes back, citing concerns that parts could go missing and hurt their assets

If this move sees daylight, it is expected to relieve thousands of homebuyers living with the scary thought of all their money going down the drain if in case their developer goes bankrupt

The company says it has a deal backed by as many as 80,000 claimants, which should be enough to meet a key legal threshold to push a settlement worth $8.9 billion through bankruptcy

Indian lenders had sent the company, earlier owned by Anil Ambani, for debt resolution in May 2018

Court agrees with tribunal orders in Bhushan Steel's acquisition by Tata group firm

IBBI had invited comments from the stakeholders to suggest if parts of stressed assets could be sold off instead of as a whole

The court-appointed insolvency resolution professional Jayesh Sanghrajka declined to comment when reached by phone

Back door for promoters to retain control closed

ED objected to the applicability of Section 32A of the Insolvency and Bankruptcy Code (IBC) to the JSW-Bhushan deal