Page 2 - Bankruptcy Code

Former WeWork CEO Adam Neumann remains billionaire despite co's bankruptcy

"It has been challenging for me to watch from the sidelines as WeWork has failed to take advantage of a product that is more relevant today than ever before," Neumann, 44, said in a statement

WeWork's bankruptcy proceeding caps swift downfall for $47 billion standout

It caps a wild ride for a company that began with the idea of re-imagining staid offices as fun places to hang out and grew to a behemoth worth $47 billion at its peak

Go First lenders likely to extend deadline seeking investor interest

The resolution professional for the company, which operated the Go First carrier, had in July invited investor interest on behalf of creditors after the airline filed for insolvency in May

NCLAT to decide over NCLT order on insolvency against Coffee Day Global

An appeal has been filed before the National Company Law Appellate Tribunal (NCLAT) challenging the NCLT order to initiate insolvency proceedings against Coffee Day Global Ltd (CDGL), which owns and operates the popular chain Cafe Coffee Day. Malavika Hegde, the suspended Director of CDGL, has approached the Chennai bench of NCLAT against the National Company Law Tribunal (NCLT) order to initiate Corporate Insolvency Resolution Process (CIRP) against Coffee Day Global. The application, seeking a stay on the NCLT order, was listed for hearing before a NCLAT bench comprising Justice Rakesh Kumar Jain and Shreesha Merla on Friday. Earlier on July 20, the Bengaluru bench of the NCLT passed an order over a plea filed by IndusInd Bank, a financial creditor of the company, claiming dues of Rs 94 crore. The NCLT had also appointed Shailendra Ajmera as the interim resolution professional after suspending the board. The order has been challenged by Malavika Hegde, a director on the suspende

J&J can't use bankruptcy to settle 100,000 baby powder cancer claims: Judge

J&J shares dropped as much as 3.4% in post-market trading following the ruling. The company vowed to appeal Judge Kaplan's ruling

Respect ruling: P&W on court order asking it to send 5 engines to Go First

Pratt & Whitney on Thursday said it respects the Interim Arbitration ruling of a Singapore court, directing the US-based engine maker to send five engines every month to Go First airlines between August and December, adding that it will comply with the same.The official spokesperson for Pratt & Whitney said, "We look forward to vigorously defending ourselves during the merits proceedings where the business and legal issues will be determined and resolved."The ruling by the Singapore court came brought some respite to the carrier, which found itself in a bankruptcy court after a fiscal slump and funds crunch.The Singapore court issued a seven-point order to the US-based engine."The respondent must take all reasonable steps to release and dispatch to the Claimant, without delay as they become available, five Engines per month immediately after any Engine becomes available and commencing, at the latest, on 1 August 2023 and continuing through 31 December 2023, subject to ...

SC to decide if resolution professionals can be tried under Corruption Act

The Supreme Court has sought a response from the CBI on a plea against a Jharkhand High Court order that a resolution professional appointed under the Insolvency and Bankruptcy Code is a 'public servant' and can be tried under the Prevention of Corruption Act. A SC vacation bench of Justices A S Bopanna and Prashant Kumar Mishra issued the notice to the CBI on a plea challenging the April 5 order of the high court. "Issue notice to the respondent on the Special Leave Petition," the plea said. The top court was hearing a plea filed by Sanjay Kumar Agarwal challenging the Jharkhand High Court order. "The present petition raises a substantial question of law that has far-reaching consequences in various proceedings pending before various courts in the territory of India: whether a resolution professional appointed under Insolvency and Bankruptcy Code, is a public servant as defined under the PC Act, and thus can be subject to proceedings and prosecution under the PC Act," the plea ..

Congress flags low debt recovery under Insolvency and Bankruptcy Code

The Congress on Friday attacked the government over the low debt recovery under the Insolvency and Bankruptcy Code and asked whether it was a mechanism to rescue stressed firms or another tool for organised loot". The Opposition party also asked whether the Insolvency and Bankruptcy Code (IBC) was aimed at helping cronies for creating monopolies by transferring businesses at throwaway prices. Addressing a press conference at the AICC headquarters here, Congress spokesperson Gourav Vallabh said the IBC of 2016 was billed as a game changer and one of the big-ticket economic reforms by the Modi government but the reality is that it has turned out to be far worse than its predecessor the Sick Industrial Companies Act (SICA) of 1985, and its Board for Industrial and Financial Reconstruction (BIFR). He said that at a time when people are struggling to make ends meet, the total recovery of debt under IBC is at only 17.6 per cent of the admitted claims, resulting in a loss of 82.4 per cent

Future Lifestyle bankruptcy: RP gets claims of Rs 2,155 cr from creditors

Future Lifestyle Fashions Ltd has received a total claim of Rs 2,155.53 crore from 12 financial creditors in the corporate insolvency resolution process (CIRP) initiated against this Future group company recently. The resolution professional of the company has provisionally admitted claims of Rs 2,117.03 crore and claims worth Rs 38.5 crore are "under verification", said the latest data shared by Future Lifestyle Fashions Ltd (FLFL) on the exchanges. As per the provision of the Insolvency & Bankruptcy Code, a Committee of Creditors (CoC) of FLFL has been formed and it will have its first meeting next week. "We wish to inform you that the first meeting of CoC of Future Lifestyle Fashions Limited (under CIRP) will be held on Tuesday, June 6, 2023," it said. On May 4, the Mumbai bench of the National Company Law Tribunal(NCLT) had directed to initiate CIRP against FLFL, admitting a petition from Bank of India. This is the third company of the Kishore Biyani-led Future Group to be ..

165 IBC liquidation cases saw 94% asset value erosion since 2016: Report

It is surprising as the lenders mostly lend loans keeping in mind the margin and the promotor's contribution

Arena-Varde Partners, NARCL and Authum submit final bids for Srei companies

Srei Infrastructure Finance and Srei Equipment Finance were admitted for bankruptcy following applications filed by the Reserve Bank of India in October 2021

IBC process: Resolution and distribution of funds may be separated

IBC amendments likely in the Budget Session, MCA also rethinking priority given to govt dues in the waterfall mechanism

Committee of creditors may ask bidders to sweeten offers for RCap

As many as 55 companies submitted expressions of interest (EoIs) for Reliance Capital but only a few submitted binding bids

Creditors recovered a third of claims in 553 resolved CIRP cases: IBBI data

IBBI says while this reflects extent of value erosion by the time a corporate debtor enters CIRP, it remains the highest among all options available to creditors for recovery

Auditor flags Rs 13,110 cr of fraud deals in Srei Equipment Finance

Sum includes transactions amounting to Rs 1,283 cr determined as undervalued; Srei Equipment Finance is currently undergoing corporate insolvency resolution process

White House monitoring FTX collapse, calls for crypto industry regulation

The collapse this week of FTX dealt another blow to the cryptocurrency industry, which has seen severe volatility and bankruptcies of other high-profile firms, including Celsius Network Ltd

IBBI rescinds 11 circulars issued from 2018 to 2021 to avoid duplication

Contents of these circulars have already been included subsequently in updated regulations issued by the IBBI

BS Number Wise: Asset reconstruction companies need to rebuild

They have been losing business as the IBC process picks up pace

NCLT extends Reliance Capital debt resolution deadline to January

This is the third deadline extension as the lenders seek better offers from the bidders

American Express to start reporting card information to NeSL in November

Decision is in compliance with 2017 RBI circular asking financial creditors to submit financial information to an information utility under Section 215 of IBC