Bankruptcy

Liquidation regulations amended to abolish sale as going concern

IBBI removes sale of company as going concern in liquidation; now only asset sales allowed, shifting focus strictly to terminal liquidation process

First Brands files for bankruptcy protection with liabilities over $10 bn

The high-profile collapse of First Brands has raised questions among investors about potential ripple effects across the automotive parts industry

IBC cases piling up largely due to lack of NCLT Benches, DFS tells MCA

With nearly 15,000 cases pending, the shortage of NCLT benches has raised concerns over prolonged insolvency processes, asset erosion, and delayed resolutions under the IBC framework

IBBI proposes assignment cap for insolvency professionals to cut delays

The IBBI has proposed imposing a cap on the number of assignments that insolvency professionals (IPs) can handle across key roles, in a bid to improve efficiency and ensure equitable distribution of work. Currently, IPs are restricted to a maximum of 10 assignments as resolution professionals (RPs) in corporate insolvency resolution processes (CIRPs), of which not more than three can involve admitted claims exceeding Rs 1,000 crore each. The proposed changes will broaden this ceiling to cover IRP and liquidator roles as well, recognising the comparable complexity and time demands of these assignments, the IBBI said in a discussion paper on Tuesday. The move comes amid concerns that a small group of IPs is handling a disproportionately large number of assignments in some instances up to 25 cases while newly registered professionals face entry barriers due to uneven distribution of work. As of March 31, 2025, out of 4,527 registered IPs, 2,198 held valid authorisations for assignment

IBBI proposes mandatory recording of CoC bidder eligibility in CIRP

The IBBI has proposed making it mandatory for the committee of creditors (CoC) to formally record its deliberations on the eligibility of resolution applicants under Section 29A of the IBC Code aimed to enhance transparency in the corporate insolvency resolution process (CIRP). Section 29A of the Insolvency and Bankruptcy Code (IBC) lays down the ineligibility criteria for persons who can submit a resolution plan for a corporate debtor undergoing the insolvency process. Provisions under the section prevent certain individuals and entities from acquiring or taking control of a stressed company if they have a history of defaults, financial irregularities, or criminal activity. The proposed amendment to CIRP norms will require such discussions to be documented in meeting minutes, based on due-diligence reports, affidavits from applicants, and other information in the resolution plan, according to a release. The board said the move will improve transparency, reduce litigation and ...

Lenders ask bidders to sweeten offers for debt-laden Jaiprakash Associates

All five bids for Jaiprakash hinge on Supreme Court ruling over 1,000-hectare Yeida land; lenders prefer cash-heavy offers with Adani seen as current frontrunner

Del Monte Foods files for bankruptcy amid shift to healthier alternatives

Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as US consumers increasingly bypass its products for healthier or cheaper options. Del Monte has secured $912.5 million in debtor-in-possession financing that will allow it to operate normally as the sale progresses. After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods, CEO Greg Longstreet said in a statement. Del Monte Foods, based in Walnut Creek, California, also owns the Contadina tomato brand, College Inn and Kitchen Basics broth brands and the Joyba bubble tea brand. The company has seen sales growth of Joyba and broth in fiscal 2024, but not enough to offset weaker sales of Del Monte's signature canned products. Consumer preferences have shifted away from preservative-laden canned food in favour of

IMF to provide Sri Lanka $350 million after fourth review of bailout

The IMF has completed the fourth review of Sri Lanka's USD 2.9 billion bailout programme, allowing the country to draw a USD 350 million tranche from the four-year facility. Amid the island's unprecedented economic crisis, the International Monetary Fund (IMF) in March 2023 approved a nearly USD 3 billion facility to assist Sri Lanka's efforts to durably restore macroeconomic stability by restoring fiscal and debt sustainability. The facility helped Sri Lanka revive its bankrupt economy by building its reserves and successfully negotiating debt restructuring with external creditors. The Executive Board of the International Monetary Fund (IMF) completed the Fourth review under the 48-month Extended Fund Facility (EFF) Arrangement, allowing the authorities to draw SDR254 million (about USD 350 million)," the global lender said in a statement. This brings the total IMF financial support disbursed so far to SDR1.27 billion (about USD 1.74 billion). The reforms that were imposed on the

Byju's offloads US assets at steep loss amid mounting financial crisis

Byju's subsidiaries Epic and Tynker were acquired by TAL Education and CodeHS for $95 million and $2.2 million after a 48-round auction, as a part of ongoing bankruptcy proceedings in the US

Companies in India not using IBC enough to resolve insolvency: IBBI chief

IBBI data suggests that the share of CIRPs initiated by corporate debtors or companies is declining over time

NCLT directs liquidation of Tulip Hotels as it fails to get bidder

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 ...

Prepack insolvency logged slow pick-up, only 13 cases till September

Of the 13 admitted cases so far, one has been withdrawn, and resolution plans have been approved in five case

Singapore oil tycoon Lim Oon Kuin declared bankrupt after empire crash

The name of the founder of Hin Leong Trading Pte. and his children Lim Huey Ching and Lim Chee Meng were listed as having been issued a bankruptcy order on Dec. 19, the government gazette showed

Spirit Airlines continues talks with creditors amid bankruptcy filing

The negotiations, with a supermajority of the noteholders, have remained productive, advanced materially and are resuming in the near term

IL&FS group discharges debt of Rs 38,082 cr to creditors as of Sep-end

"As on September 30, 2024, the total debt discharged to creditors of the Respondent No 1 (IL&FS) Group aggregates to Rs 38,082 crore," the status report said

JSW Energy tops rivals Adani, NTPC as highest bidder for KSK Mahanadi

Bid propels RE firm to the forefront of power generation in Chhattisgarh

Byju's affiliate drained cash from US units, violating bankruptcy rules

Money that should be used to repay creditors was instead siphoned off to Whitehat Education Technology, a court-approved trustee for the affiliates said in court papers

Bankruptcy court seeks SpiceJet's reply over unpaid operational dues

The court was told that the said debt has been acknowledged by the airline and yet there has been no compliance

Tupperware boxed in by stiff competition, changing preferences in India

The company, which started in the US in the early 1940s and later set foot in India almost 30 years ago, has seen its sales slowly dwindle, and in FY23, its bottom line was in the red

Tupperware lenders fight over assets as company files for bankruptcy

Lenders urged Tupperware to avoid bankruptcy and accept a simple foreclosure instead, court documents show