Page 3 - Bankruptcy

A third of withdrawn insolvency processes fully settled, says IBBI

IBBI said that the credible threat of the code that a company may change hands has changed the behaviour of debtors

Debtors resolving cases before admission under insolvency law: IBBI

Over 27,500 applications for resolution process against corporate debtors have been withdrawn before their admission, with regulator IBBI emphasising that the credible threat of the insolvency law that ownership of debtors might change has changed the behaviour of debtors. These Corporate Debtors (CDs) had an underlying default of Rs 9.74 lakh crore. The Insolvency and Bankruptcy Code (IBC), introduced in December 2016, provides for a time-bound and market-linked resolution of stressed assets. "The credible threat of the Code, that a CD may change hands, has changed the behaviour of debtors. Thousands of debtors are resolving distress in early stages of distress. "They are resolving when default is imminent, on receipt of a notice for repayment but before filing an application, after filing application but before its admission, and even after admission of the application, and making best effort to avoid consequences of the resolution process," the IBBI said in its latest ...

WBIDC moves HC challenging arbitration award to TaMo over Singur plant

The West Bengal Industrial Development Corporation (WBIDC) on Monday moved the Calcutta High Court, challenging an arbitration award to Tata Motors Ltd on account of loss of capital in investments made in the abandoned car manufacturing plant at Singur. The court of Justice Mousumi Bhattacharya, before which applications by WBIDC for a stay on the award and an appeal challenging the arbitration award were listed for hearing, released both the matters on Monday. These will be placed before the Chief Justice of the high court for fresh listing before another bench. In its appeal, WBIDC claimed that it had been denied equal opportunity during the hearings before the arbitral tribunal. The corporation said it was not given full opportunity to present its case before the three-member tribunal. Following stiff resistance by the Trinamool Congress, led by then opposition leader Mamata Banerjee, alleging forcible acquisition of farmland, Tata Motors had announced pulling out of the Singur

Banks to conduct performance review of advocates to fast-track DRT cases

Banks will conduct periodical review of the performance of empanelled advocates at debt recovery tribunals (DRTs) and rationalise the cases assigned to them based on performance, the finance ministry said on Saturday. This is part of the issues discussed at a conference of Chairpersons of Debt Recovery Appellate Tribunals (DRATs) and Presiding Officers of Debt Recovery Tribunals (DRTs) chaired by Department of Financial Services Secretary Vivek Joshi. The meeting was also attended by senior officers from the public and private sectors banks; chief executive officer (CEO), Indian Bank Association (IBA); and senior officers from the Ministry of Finance and Insolvency and Bankruptcy Board of India (IBBI). The conference also discussed that DRTs and DRATs would take all possible steps to reduce pendency at various stages through strict monitoring. Several suggestions regarding changes and amendments in Debts Recovery Tribunal Regulations, SARFAESI Act and RDB Act discussed to make the

SpiceJet promoter Ajay Singh, Busy Bee Airways bid for bankrupt Go First

SpiceJet announced that it would act as the operating partner for the new airline, providing staff and services

Fin service providers must have regulatory nod for liquidation: IBBI

Liquidators need to ensure that financial service providers have the requisite permission from their respective regulator before commencing voluntary liquidation process under the insolvency law. The Insolvency and Bankruptcy Board of India (IBBI) on Tuesday issued a circular in this regard amid instances of Financial Service Providers (FSPs) commencing voluntary liquidation process without requisite approvals. Under the Insolvency and Bankruptcy Code (IBC), the definition of corporate persons excludes any FSP. FSPs notified by the central government after consulting financial regulators are allowed to undergo a voluntary liquidation process after obtaining prior permission of the appropriate regulator. The requirement is part of the Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority Rules, 2019. According to IBBI, it has been noted that some FSPs have commenced the voluntary liquidation process without notifying the ...

Byju's US unit files for bankruptcy, lists liabilities of $1 bn to $10 bn

US unit of Indian education technology startup Byju's has filed for Chapter 11 bankruptcy proceedings in the U.S. court of Delaware, listing liabilities in the range of $1 billion to $10 bn

Canada braces for possible wave of business bankruptcies amid slowdown

There were about 1.2 million small businesses with employees in Canada in 2021 and contributing over a third to the country's gross domestic product, according to the latest official data

Talc lawsuit: J&J sets up 3rd bankruptcy bid by moving unit to Texas

The company filed a request last month with the Texas secretary of state's office to relocate its LTL Management unit to Austin and rename it ahead of a Chapter 11 filing in the state

No more gawking at gay leaders, people

The rising acceptance of gay leaders has taken the sting out of stories outing them

NCLAT sets aside notice against lenders over liquidation without bids

The National Company Law Appellate Tribunal (NCLAT) on Wednesday set aside an order of the NCLT, which had issued a show cause notice for recommending liquidation of realty firm SARE Realty Projects, without exploring the possibility of finding a buyer. The appellate tribunal said there is an "error in the approach" of the National Company Law Tribunal (NCLT) for taking a decision regarding the liquidation of a corporate debtor (CD) and the lenders have to complete all the steps regarding resolution. "The CoC has the jurisdiction to pass the order of liquidation of the CD, approving it by not less than 66 per cent of the voting share, but it should be before the confirmation of the resolution plan," said NCLAT. Earlier, the New Delhi Bench of NCLT had on March 16, 2023 issued a show cause notice to the lenders asking why penalty stipulated under Section 65 of the Insolvency & Bankruptcy Code should not be imposed on them. NCLT had said that "it was prima facie of the opinion that .

Government may implement 2-month asset freeze of airlines under insolvency

To prevent immediate repossession of aircraft by lessors after default, the government is contemplating a two-month moratorium rule for the aviation sector

SpiceJet shows interest in acquiring bankrupt carrier Go First: Report

The lenders of Go First have been contemplating liquidation as they think it will lead to a better recovery as compared to selling it

After Birmingham, Central England city of Nottingham declares bankruptcy

Nottingham, a city in central England's Midlands region, on Wednesday declared itself effectively bankrupt after its council failed to deliver a balanced budget for the year. Nottingham City Council, run by the Opposition Labour Party, issued a Section 114 notice over a "significant gap" in the local authority's budget even as it stressed that it is not bankrupt and is able to meet its staff salary obligations. The announcement makes Nottingham the second city to declare financial failure this year after Birmingham City Council issued a similar notice in September. A report discussed at the council's Executive Board meeting on 21 November outlines the council's latest financial position and highlights that a significant gap remains in the authority's budget, due to issues affecting councils across the country, including an increased demand for children's and adults' social care, rising homelessness presentations and the impact of inflation, a Nottingham City Council statement ...

IMF's second tranche finalisation to Sri Lanka in Dec: Nandalal Weerasinghe

The second tranche of the USD 2.9 billion IMF bailout for cash-strapped Sri Lanka would be finalised within the next month, central bank governor Nandalal Weerasinghe said on Friday. The government is expecting around USD 330 million as the second tranche of the USD 2.9 billion 4-year bailout, following the first one that was extended in March under the Extended Fund Facility (EFF) to support Sri Lanka's economic policies and reforms. Sri Lanka was hit by its worst economic crisis in history when the country's foreign exchange reserves fell to a critical low and the public came out on the streets to protest the shortage of fuel, fertilisers and essential commodities. We are making good progress with the first review. We will get the programme approved. What is required for that (is) assurances from bilateral creditors. The official creditor committee would be forthcoming, Governor of the Central Bank of Sri Lanka (CBSL) Weerasinghe told reporters. With that, there will be additiona

WeWork India adds 2 buildings with over 4K desks in Bengaluru, Hyderabad

Earlier this month, WeWork Inc., the parent company, filed for bankruptcy under Chapter 11 of the US Code in New Jersey

Future Retail heads for liquidation as lenders fail to get suitable buyer

Future Retail, once the crown jewel of Kishore Biyani-led Future Group, is now heading for liquidation as its lenders could not get any reasonable buyer of the debt-ridden firm. As the Committee of Creditors (CoC) rejected the sole resolution plan submitted by Space Mantra after four extensions in the deadline to complete the corporate insolvency resolution process (CIRP), the RP of the company has now approached NCLT to initiate liquidation of Future Retail (FRL). "The resolution plan submitted by Space Mantra Private has not been approved by CoC of FRL, kindly note that, the Resolution Professional (RP) has filed an application, before the National Company Law Tribunal, Mumbai Bench, for initiation of liquidation of FRL," said a regulatory filing from FRL. Last month FRL had informed that Rs 550 crore bid submitted by Space Mantra for FRL, failed to get the required number of votes in the e-voting process of the CoC. The NCLT had granted four extensions to FRL for completion of C

WeWork bankrupt: What went wrong for world's most valuable startup?

On 7th November, WeWork, the once-dazzling star in the shared office space universe, sought shelter in bankruptcy protection, signalling a sobering checkpoint in its tumultuous journey. >

WeWork goes bankrupt after failing to recover from pandemic, failed IPO

WeWork's collapse into bankruptcy is the culmination of a years-long saga for the company, which was once the biggest office tenant in Manhattan

Japan's SoftBank makes another bet on WeWork, hoping landlords will too

WeWork's long-term lease obligations of $13.3 billion accounted for more than 70% of its total debt as of end-June