Page 4 - Ibc

Economic prospects

Interventions needed to support long-term growth

Battery maker IBC raises $35 mn to fund manufacturing expansion in India

Company says it is developing products are safe at high temperatures and have a longer life

IBC needs further changes for resolution of biz conglomerates: RBI Dy Guv

Swaminathan J, deputy governor, RBI said that very often business conglomerates have intricate corporate structure with inter-connected related-party relationships that add to the complexity

Resolve this: How India's insolvency process drags on, erodes asset value

Litigation tactics of corporate debtors and poor judicial infrastructure among reasons for delay

Best of BS Opinion: Power for all, Mutual funds' growing heft & more

Here is the best of Business Standard's opinion pieces for today

A performance appraisal of IBC

Despite potential biases introduced by the Dosa approach in analysing its efficacy, the law appears successful in delivering on its key parameters

Learnings from IBC suggest need for 'some course correction': RBI chief Das

Lenders have recovered 32 per cent of their total claims under the Insolvency and Bankruptcy Code (IBC) but the learnings suggest the need for "some course correction" with respect to the law, RBI Governor Shaktikanta Das said on Thursday. He said the major criticisms of the IBC are on two fronts -- the time taken for resolution and the extent of haircuts as against the admitted claims. The IBC, which came into force in 2016, is a key legislation aimed at resolving stressed in a time-bound and market-linked manner. Addressing a conference on the IBC organised by the Centre for Advanced Financial Research and Learning (Cafral) here, Das said "if we have to take stock of the IBC implementation journey and its impact so far, there are significant positive indications as well as learnings, suggesting a need for some course correction". In terms of realisation of value, the creditors have realised Rs 3.16 lakh crore out of the admitted claims of Rs 9.92 lakh crore as of September 2023,

IBC yet to address resolution for insolvencies of group companies

Group insolvency remains an ill-defined area in the IBC. Here's why it needs a clear framework

IBBI forms panel of 787 professionals to expedite resolution process

This move by the insolvency regulator aims to avoid delays and preserve asset value amid rising stressed cases

MCA planning new portal to streamline IBC cases, boost transparency

The IBBI would also be able to keep track of the happenings in the NCLT through this portal

IBC has been revolutionary, but it's time for improvement and tweaks

Insolvency cases remain pending for months and years, deterring stakeholders. It is imperative that litigation be reduced

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

Manufacturing tops insolvency cases, real estate a close second

The recovery rate from personal guarantors currently stands at 5.22%. This rate is anticipated to rise following the Supreme Court's recent ruling affirming the constitutionality of the IBC provisions

Liquidation share in insolvency cases on the decline, shows IBBI data

As of the months of September 2021, September 2022 and September 2023, around 45 per cent of the total cases admitted into insolvency ended in liquidation

Adani, JSW Cement, and ArcelorMittal eyeing Vadraj Cement in IBC Sale

The Bombay High Court ordered the winding up of Vadraj Cement in August 2018, leading to the decision to sell the company under the IBC process

Debt guarantees

Supreme Court has strengthened the IBC framework

IIM Ahmedabad study finds significant improvement in firms post IBC

The study found that hotels and restaurants have had the highest recovery rate for creditors under the IBC while electricity, gas, and water supply firms have the lowest recovery rates

Insolvency and Bankruptcy Code: Personal guarantors get no SC reprieve

More than 200 petitions, including by Anil Ambani, challenged law on due process

SAT partially upholds market regulator Sebi order in Deccan Chronicle case

In May 2022, Sebi had issued an order alleging manipulation in financials, lapses in buyback procedures, and failure to submit disclosures on material information

Go First lenders likely to recover Rs 1,600-1,900 cr through Thane land

The Go First lenders are seeking to recover around 25-30% or Rs 1,600 crore-Rs 1,900 crore of their exposure to the airline