Page 4 - Bankruptcy

Radio Mirchi, Orange bid Rs 251 crore in race to acquire insolvent Big FM

Leading FM Radio network Radio Mirchi, a part of Entertainment Network India Limited (ENIL) and Radio Orange have bid Rs 251 crore to acquire BIG FM Radio network, sources said. Haryana-based Sapphire FM is the other bidder in the race for BIG FM, which is undergoing an insolvency process. Incidentally, Sapphire FM has also made a bid of Rs 251 crore for Big FM. The bidders couldn't immediately be reached for comments. Both the bidders -- Radio Mirchi & Orange FM consortium and Sapphire FM -- have offered to pay the bid amount within 30 days. Sources close to the process also revealed that the lenders are likely to ask both the bidders to revise their bids upward. Also, Rs 60 crore cash lying in the company's accounts will also go to the lenders, they said. After considering the cash at Big FM, the total recovery for lenders could be as high as 55 to 60 per cent against the total admitted claims of Rs 578 crore. Reliance Broadcast Network Ltd (RBNL) owned by BIG FM is the ...

J&J weighs third bankruptcy try to settle baby powder cancer case

Attorneys for some plaintiffs opposed the idea of a return to bankruptcy court

Chiefs of Air India, Vistara, SpiceJet meet civil aviation minister

Air India, Vistara, SpiceJet, and IndiGo representatives thanked him for the recent amendment in IBC whereby aircraft equipment have been exempted from moratorium under the IBC

Wadias likely to leave Go First, show no intent to bid for grounded airline

Cash-strapped Go First filed for bankruptcy in May, blaming 'faulty' Pratt & Whitney engines for the grounding of about half its fleet

Grounded airline Go First gets expression of interest from Jindal Power

"Jindal Power was the sole successful applicant whose expression of interest was accepted by banks," said a banker with a state-run bank that has exposure to Go First

SpiceJet, aircraft lessor Celestial Aviation working towards settlement

Budget carrier SpiceJet and aircraft lessor Celestial Aviation are working towards settlement, which is in the advanced stage, insolvency tribunal NCLT was informed on Tuesday. During the proceedings, counsel appearing in the matter informed about the development and requested the National Company Law Tribunal (NCLT) to adjourn the matter, which was accepted. The development came during the hearing of a plea filed by Celestial Aviation Services Ltd, an operational creditor, to initiate insolvency proceedings against the airline. A two-member NCLT bench directed to list the matter on November 7 for the next hearing. According to some reports, Celestial Aviation Services Ltd is claiming a default of USD 29.9 million for nine aircraft. It is the fifth lessor, which had moved against SpiceJet. Some other lessors such as Willis Lease Finance, Aircastle and Wilmington have also moved pleas to initiate insolvency proceedings against SpiceJet before the NCLT. Earlier on September 5, NCLT

Aviation leasing watchdog cuts India's compliance rating amid Go First row

The courtroom battle started after Go First was granted bankruptcy protection in May. Under Indian law, that prevented lessors from recovering 50-plus grounded Airbus planes

NCLAT dismisses IDBI plea for insolvency against Cyquator Media Services

The National Company Law Appellate Tribunal (NCLAT) on Thursday dismissed the petition of IDBI Trusteeship Services challenging the order of NCLT which had denied starting insolvency proceedings against Essel group firm Cyquator Media Services. A two-member bench of the appellate tribunal observed that the default, claimed by IDBI Trusteeship, had happened during June 2020, which is covered under the period excluded under Section 10A of the Insolvency and Bankruptcy Code, 2016. Section 10A bars absolutely and forever, the filing of any application under Sections 7, 9 and 10 of the Code, for defaults committed on or after March 25, 2020 up to March 25, 2021. No application for initiation of the corporate insolvency resolution process can be filed in respect of any default that has occurred on or after March 25, 2020 till September 24, 2020, which was subsequently extended till March 25, 2021 by the government through a notification dated December 22, 2022. In June this year, the Mum

Dubai Aerospace flags corrosion in plane leased to bankrupt Go First

Foreign lessors have been engaged in a legal tussle to repossess their aircraft after the Indian airline was granted bankruptcy protection in May

UK's second-largest city Birmingham declares itself effectively bankrupt

The local authorities running Britain's second-largest city, Birmingham, have shifted focus on maintaining vital services as they declared the council effectively bankrupt due to an annual budgetary shortfall of millions of pounds. Birmingham City Council, which is run by the Opposition Labour Party and is the largest local authority in Europe comprising over 100 councillors, issued a Section 114 notice on Tuesday to say that all new expenditures with the exception of protecting vulnerable people and statutory services will stop immediately. The council said the dire financial situation arose as it must fund an equal pay liability that has accrued to date in the region of GBP 650 million to GBP 760 million, but it does not have the resources to do so. On that basis, the Council's Interim Director of Finance, Fiona Greenway, has issued a report under section 114(3) of the Local Government Act, which confirms that the Council has insufficient resources to meet the equal pay expenditur

Drug retailer Rite Aid Corp preparing to file for bankruptcy: Report

Regionally focused Rite Aid operates more than 2,330 stores in 17 U.S. states, although it is much smaller than rivals like Walgreens Boots Alliance and CVS Health

NCLAT reserves order on Jalan-Kalrock Consortium's plea in Jet Airways case

The National Company Law Appellate Tribunal (NCLAT) on Monday reserved its order on Jalan-Kalrock Consortium's plea seeking more time to make payments to the lenders of the bankrupt Jet Airways. The consortium had emerged as the winning bidder for the airline, which stopped flying in April 2019 and later underwent an insolvency resolution process. The consortium is to pay Rs 350 crore to the lenders by August 31 but has sought an extension for making the payment. A three-member NCLAT bench said it will pass the order on next Monday and has granted three days' time to the parties to file their written submissions. "Heard learned counsel for the parties... orders on August 28, 2023. Parties are at liberty to file their short notes of submission of not more than three pages within three days," the appellate tribunal said. The bench would also decide the consortium's plea to consider a performance bank guarantee of Rs 150 crore as part of the payment of Rs 350 crore. The consortium h

China Evergrande Group files for bankruptcy in New York amid debt crisis

The move protects it from creditors in the US while it works on a restructuring deal elsewhere

NCLAT permits Engine Lease Finance to inspect its jet engines with Go First

The National Company Law Appellate Tribunal (NCLAT) on Friday allowed Engine Lease Finance BV to inspect their four engines leased to crisis-hit carrier Go First. A two-member bench of the appellate tribunal granted relief to Engine Lease Finance (ELF) after modifying the earlier order of the National Company Law Tribunal (NCLT) on July 26. NCLAT has directed the resolution professional of Go First, which is going through the corporate insolvency resolution process (CIRP), to allow the world's leading independent engine financing and leasing company to inspect the engines within 10 days of the order. "We are of the view that inspection be permitted within 10 days from today," said an NCLAT bench comprising Chairperson Justice Ashok Bhushan and Barun Mitra. During the proceedings, counsel for the resolution professional submitted that in view of the orders passed by the Delhi High Court, the inspection shall be allowed, and the date for carrying out the inspection shall be intimated

Future Retail resolution professional moves NCLT against Kishore Biyani

The Resolution Professional (RP) of Future Retail Ltd (FRL) has filed an application before the NCLT against Kishore Biyani, his brother Rakesh Biyani and eight other entities alleging their involvement in a "fraudulent transaction" in the company. This application "has been filed pursuant to the findings in the report received from Nangia & Co. LLP, which was appointed as 'Transaction Review Auditor' by the RP," said a regulatory filing from Future Retail Ltd (FRL). The Transaction Review Auditor was to assist RP in his duties and the determination, wherein a transaction has been reported under Section 66 of the Code for adjudication by the NCLT. "RP of FRL has filed an application before National Company Law Tribunal, Mumbai, against certain persons, to seek avoidance of transaction under the applicable provisions of the Insolvency & Bankruptcy Code 2016," it said. As per the disclosure, the estimated amount involved is Rs 40.53 lakh. The report has also named one entity ...

Dadheech Infra case: NCLAT upholds NCLT's insolvency proceedings verdict

The National Company Law Appellate Tribunal (NCLAT) on Thursday dismissed a petition against the NCLT order allowing the initiation of insolvency resolution proceedings against Dadheech Infrastructures. While upholding the National Company Law Tribunal's ruling in the case, the NCLAT also flagged that "unreasonable and unexplained delays in delivering verdicts are not desirable". The NCLT had reserved its order in December 2022 and pronounced the order only in June this year. The Kolkata bench of the National Company Law Tribunal (NCLT) in June this year allowed initiating Corporate Insolvency Resolution Process (CIRP) against Dadheech Infrastructures on a plea filed by SREI Equipment Finance, which itself is undergoing CIRP. The decision of the NCLT was challenged by way of a petition by Sanjeev Kumar Sharma, who was a director on the now-suspended board of Dadheech Infrastructures. A two-member NCLAT bench said it was satisfied with the findings recorded by the Kolkata Bench of t

Go First seeks emergency funding of Rs 100 crore from creditor banks

The funds will go towards operational costs such as insurance and repairs that could keep the airlines afloat

Top headlines: Govt defers laptop import curbs, Go First insolvency

Business Standard brings you the top headlines at this hour

FTX draft bankruptcy plan seeks cash repayment, FTT wipeout: Report

FTX also still hasn't ruled out rebooting an offshore exchange, according to the filings

Billions in corporate debt: Wave of bankruptcies threatens global economy

Rising tide of distress is, of course, to certain degree by design. Caught by surprise as inflation surged, monetary policymakers have been aggressively draining cash from the world's financial system