Page 2 - Bankruptcy

Tupperware lifts lid on its financial problems with bankruptcy filing

The company behind Tupperware, the plastic kitchenware that revolutionized food storage after World War II and became inextricably linked to the parties where women seeking a measure of financial independence and fun in midcentury America sold the colorful products, has filed for bankruptcy. Tupperware Brands, the Orlando, Florida-based consumer goods company that produces the iconic line of containers, said it was seeking Chapter 11 bankruptcy protection after struggling to revitalize its core business and failing to secure a tenable takeover offer. Despite enjoying the same cultural ubiquity as Kleenex, Teflon and other brands whose trademarked names are eponymous with entire product categories, Tupperware has suffered from waning sales, rising competition and the limitations of the direct-to-consumer marketing model that once defined its success. The company said Tuesday in its bankruptcy filing that consumers shifting away from direct sales, which make up the vast majority of it

Hinduja group firm to raise Rs 3,000 crore as debentures to fund RCap buy

The zero-coupon debenture issue will open and close on Monday and attract a yield rate of 14.5 per cent

Byju's bankruptcy ruling in US comes as a surprise for Indian official

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

Lenders ask KSK Mahanadi Power Company bidders to better Adani offer

Adani has offered Rs 27,000 cr for Chhattisgarh project

Byju's hedge fund ally Morton seeks to keep lawyers as cash runs out

After the hearing, Morton said his Miami-based Camshaft Fund has run out of cash and owes money to creditors

Lenders vote to liquidate defunct airline Go First due to low bids

A senior executive of a private bank, which has a small exposure to the airline, said voting for the proposal is through and the airline will be recommended for liquidation soon

Go Air crisis: Central Bank set to auction Wadia's land for Rs 1,965 cr

Over 94 acres of land will be sold under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002

Suraksha Group finally takes over Jaypee Infratech via insolvency process

In a big relief to over 20,000 homebuyers, Suraksha Group has taken control of the debt-ridden realty firm Jaypee Infratech by constituting a three-member board and will soon infuse Rs 125 crore equity fund to start construction of stalled housing projects across Delhi-NCR. The takeover follows insolvency appellate tribunal NCLAT decision on May 24, upholding Suraksha Realty's bid to acquire Jaypee Infratech while directing it to pay an additional Rs 1,334 crore as farmers' compensation. According to a regulatory filing by Jaypee Infratech on Wednesday, Suraksha Group informed the IMC (Implementation and Monitoring Committee) that May 24, 2024, i.e., the date of the NCLAT order should be treated as the 'Approval Date' as defined in the approved resolution plan. The IMC in its meeting held on Tuesday approved the appointment of Sudhir V Valia, who is promoter of Suraksha Group, as a Non-Executive Director. It approved the appointment of Aalok Champak Dave as Executive Director and

Creditors' haircuts in bankruptcy cases jump to 73% in FY24: Report

The haircuts taken by creditors in bankruptcy resolutions have increased to 73 per cent in FY24 from the 64 per cent in FY23, a report said on Friday. A total of 269 resolution plans were approved by the National Company Law Tribunals (NCLTs) in FY24, up from 189 in the year-ago period, the report by domestic rating agency Icra said. The new admissions declined to 987 in FY24 from the 1,263 in FY23, the agency said, attributing the same to a higher base in the previous fiscal because of the Covid-19 pandemic-related stress. It can be noted that the haircuts, or sacrifices, in comparison to the total dues, which are done by lenders when it comes to corporate insolvency resolutions has led to some concerns in the past about the value at which a new bidder is getting the assets. Its group head for structured finance ratings, Abhishek Dafria said there has been a "worsening" of the haircuts which are taken by the creditors through the Insolvency and Bankruptcy Code (IBC) process to a .

Air Vanuatu files for bankruptcy after cancelling all international flights

Air Vanuatu filed for bankruptcy protection on Friday a day after the South Pacific state-owned carrier cancelled all international flights, stranding thousands of travellers. The airline on Wednesday cancelled more than 20 flights to and from the Australian cities of Sydney and Brisbane, and the New Zealand city of Auckland for the rest of the week. The airline said it was the result of extended maintenance requirements on their aircraft. Ernst & Young Australia's Morgan Kelly, Justin Walsh and Andrew Hanson were appointed liquidators in an equivalent of a US Chapter 11 bankruptcy, the firm said in a statement. The liquidators said safety and maintenance checks would be made before normal operations resumed. Kelly said the airline's existing management team would remain in place. Air Vanuatu is critical to the people of the Republic of Vanuatu and a strategically important business to the nation, Kelly said. Our team is working closely with management to ensure continuity of ...

Plane-less Go First's situation 'painful'; hopes for tailwind remain muted

Last May, it all started with flight suspension for just three days and "an unfortunate decision" of voluntary insolvency resolution option taken to protect the airline's interests. A year down the lane, the now plane-less Go First's fate remains uncertain and come June, there are revival expectations, though muted, when the extended deadline for the resolution process ends. There are concerns that the airline might even be pushed into liquidation, experts opined. "It is extremely painful to see that even after one year, the airline has not been able to revive the operations," the budget carrier's former chief Kaushik Khona told PTI. Since May 3, 2023, Go First has not taken to the skies, with its blue and white livery A320 planes gathering dust at airports, most staff leaving and many staring at uncertain times, and a resolution process still remaining on the tarmac. Hopes of a quick revival further faded, as the carrier's 54 planes have been deregistered after protracted legal .

Go First planes need parts; lessors to take longer to fly them out of India

Lessors are likely to take a longer time to fly the Go First's deregistered 54 planes out of the country as the majority of the planes require engine and spare parts, according to industry experts. Out of the 54 planes, around 24 that were in a flying condition when the airline stopped operations last May have not undergone continued maintenance while 30 are without engines and spare parts. The Directorate General of Civil Aviation (DGCA) has deregistered all the 54 remaining aircraft of Go First after a Delhi High Court ruling on April 26 that allowed lessors to take back the leased planes. While the insolvency resolution process is on, sources said the airline's revival looks an uphill task, considering that there are not many assets left after the deregistration of the planes. Regarding these aircraft, one of the sources said lessors are likely to take more time to ferry the 54 planes out of the country as at least 30 of them will require replacement of engines. Besides, the pl

WeWork strikes new restructuring deal that spurns co-founder Adam Neumann

WeWork would be majority owned by Yardi, a provider of software for commercial and residential property owners, according to lawyers and a company statement issued after Monday's hearing

Repeat offenders made up 40% of US corporate defaults in 2023: Moody's

These and other companies with a high level of debt struggled through an elevated interest rate and inflationary environment, said the report, which was released on Tuesday

NCLT disposes case of bankruptcy plea filed by against Mumbai Metro One

In a relief to Reliance Infrastructure, National Company Law Tribunal (NCLT) has disposed of insolvency case filed by SBI and IDBI Bank against Mumbai Metro One Pvt Ltd (MMOPL). Mumbai Metro One Pvt Ltd (MMOPL) is a 74:26 joint venture of Reliance Infrastructure Ltd and Mumbai Metropolitan Regional Development Authority (MMRDA). "We wish to inform you that the Section 7 petitions of SBI and IDBI Bank are disposed of by NCLT Mumbai in view of OTS (one-time debt settlement) issued by all lenders, against Mumbai Metro One Pvt Ltd (MMOPL)," Reliance Infrastructure Ltd said in a regulatory filing on Monday. An application under Section 7 of Insolvency and Bankruptcy Code (IBC) is initiated by a financial creditor either on their own or jointly with other financial creditors for initiation of Corporate Insolvency Resolution Process against a corporate debtor. State Bank of India (SBI) had in August 2023 filed an application before the NCLT against the Mumbai Metro, to recover Rs 416.08 .

From Shirpur Merchants to PMC: What happens to your money when banks fail

Deposits up to Rs 5 lakh are refunded within 90 days from the start of the moratorium when banks go bankrupt

Defunct SVB Group to sell Indian subsidiary to First Citizens Bancshares

SVB Financial Group is currently seeking approval from a bankruptcy court, with a hearing scheduled for April 9. The company anticipates that the transaction will close after this hearing

IL&FS moves NCLAT, seeks protection for group cos from wilful defaulter tag

The newly appointed board of debt-ridden IL&FS has moved an urgent application before the appellate tribunal NCLAT to restrain 11 public sector lenders from initiating proceedings to declare its group companies as "wilful defaulters". In its petition, IL&FS said it is aggrieved by the "blatant violation and disregard" of previous NCLAT orders by the banks. IL&FS also charged banks of taking procedural action under the garb of the RBI guidelines, and harassing the Directors of the IL&FS companies". The banks are "issuing show cause notices, calling for a personal hearing before the Wilful Defaulter Identification Committee, threatening initiation of criminal proceedings, including initiating proceedings as well as and for declaring IL&FS companies and their current Directors as Wilful Defaulters, as well as getting issued Look Out Circulars," it submitted. "All such coercive actions/steps are attempts by the Respondent Banks to pressurize the IL&FS companies to .

NCLAT upholds Jet Airways transfer of ownership to Jalan Kalrock Consortium

Insolvency appellate tribunal NCLAT on Tuesday upheld the resolution plan of grounded carrier Jet Airways and approved the transfer of its ownership to Jalan Kalrock Consortium. The NCLAT bench has directed the Jet Airways monitoring committee to complete the transfer of ownership within 90 days. Besides, it has also directed the lenders of Jet Airways to adjust the Rs 150 crore paid by the consortium as performance bank guarantee. The lenders of Jet Airways and Jalan Kalrock Consortium (JKC), the successful bidder, are in a legal tussle for more than a year over the transfer of the management of the grounded carrier. Earlier, the lenders had approached the Supreme Court, which had declined to interfere in the matter and had directed the National Company Law Appellate Tribunal (NCLAT) to take a decision on the issue. The NCLAT directed the managing committee, consisting of lenders led by SBI, to create security on immovable properties as offered by the successful resolution applic

The Body Shop ends US operations; to close Canadian stores amid bankruptcy

Despite having more than 2,500 retail locations in 80+ countries, The Body Shop has faced challenges in recent years and struggled to compete in the market, leading to its bankruptcy filing