Bankruptcy Laws

CoC approves JSW Energy's resolution plan for Raigarh Champa Rail Infra

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

India's bankruptcy law gets another reboot but will it work this time?

To its credit, the government has been constantly working to improve the code, and the latest Bill is a step in the right direction

Microsoft's Russia unit to file for bankruptcy amid operational exit

The note posted on Fedresurs on Friday said that Microsoft Rus LLC was intending to declare bankruptcy

Centre considers to revamp bankruptcy laws amid low recovery rates

The Insolvency and Bankruptcy Board of India is finalizing a set of proposals aimed at speeding up resolution

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

Adam Neumann moves to buy back WeWork as it seeks funds to exit bankruptcy

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

Missed timelines, manpower crunch pose challenges for insolvency resolution

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

IBC recoveries declining, resolution timelines getting prolonged: Crisil

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

Companies can now register themselves as insolvency professionals

Earlier, the regulations only allowed the IPEs to provide support services to insolvency professionals

US: AMC, Bed Bath & Beyond lead rout in meme stocks as mania fizzles

AMC Entertainment Holdings Inc. plunged 38% in premarket trading ahead of its debut of a new class of shares and after peer Cineworld Group Plc confirmed it may go bankrupt.

Some gaps in ILC recommendations on resolution process, say experts

Report seen as unclear on who should pursue cases related to avoidable transactions and improper trading under bankruptcy code

Srei's Hemant Kanoria to challenge report alleging fraud at group firm

Transaction auditor's methodology 'opaque' and legal fight over it could derail resolution process, say sources close to Kanoria.

Coinbase new disclosure does not mean crypto firm risks bankruptcy: CEO

Coinbase would take further steps to ensure it offered protection for its retail customers, says Brian Armstrong.

IBC has brought change in attitude of lenders, borrowers: Goyal

Goyal said IBC is a game changing reform compared to the past, when resolution would take probably decades

IBBI amends regulations for more transparency and accountability

Resolution professionals (RPs) will be required to inform the adjudicating authority about avoidance transactions of a corporate debtor

Top headlines: Bankruptcy case against Anil Ambani, TCS-Epic Systems case

Business Standard brings to you a snapshot of events that made it to the headlines today

Focus on capital formation policy

It is vital to ensure that the clamour for suspending bankruptcy laws does not translate into reality

Bidders jittery over coronavirus impact on bankrupt firms, seek legal help

Seek legal advice, want force majeure clause included in new contracts

In a first, RBI moves NCLT seeking insolvency proceeding against DHFL

An interim moratorium on the assets of the beleaguered company has also commenced following the RBI's application, and will continue till it is accepted or rejected by the NCLT

World's worst bad-loan mess set to worsen on India's cash crunch

The failure to slash stressed assets is undermining India's efforts to revive economic growth that has cooled to a six-year low