Page 11 - Insolvency And Bankruptcy Code

NCLT initiates insolvency proceeding against MEP Infrastructure Developers

The National Company Law Tribunal has initiated the corporate insolvency resolution process (CIRP) against MEP Infrastructure Developers Ltd on a plea filed by Bank of India and appointed an interim resolution professional to take control of the company. The Mumbai bench of the NCLT admitted the plea under the IBC filed by the public sector lender, claiming a default of Rs 127.86 crore. "The factum of the existence of financial debt and its default stands proven on record. It has also been established that the petition is within time. Considering the facts placed before us and the fact that the Corporate Debtor owes the Financial Debt in excess of Rs 1 crore, which is in default. "This bench is of the view that in such circumstances, it is imperative that the CIRP be initiated in the matter of the Corporate Debtor (MEP Infrastructure)," said a two-member NCLT bench in its 9-page order passed on March 28, 2024. The NCLT order further said there would be a moratorium under section 14

NCLAT scraps homebuyers' plea for insolvency against Ansal Hi-tech Township

The National Company Law Appellate Tribunal (NCLAT) on Monday set aside a plea seeking insolvency proceedings against Ansal Hi-tech Township Ltd filed by its homebuyers of a project in Greater Noida. The appellate tribunal has upheld the order passed by the Delhi-based bench of the National Company Law Tribunal (NCLT), which had in January 2023 set aside the plea of homebuyers, observing that the allottees belong to different projects and does not fulfil the required criteria to file an insolvency case. The project is located in Greater Noida, Uttar Pradesh. The NCLT's order was challenged before the NCLAT. The homebuyers argued that the agreement with the developer terms 'Sushant Megapolis' as one complete 'Project' and was signed much before RERA (Real Estate Regulation and Development Act) came into force. They further submitted that 1,500-acre project 'Sushant Megapolis' comprises plots, built-up plots, raw houses/flats/floors, high-rise apartments, under various allocated site

NCLAT dismisses BHEL's pleas against REC over Hiranmaye Energy insolvency

Insolvency appellate tribunal NCLAT on Monday set aside a BHEL petition seeking to halt REC from initiating insolvency proceedings against Hiranmaye Energy, formerly India Power Corp (Haldia). The NCLAT said it sees no reason to interfere in the order passed by the Kolkata bench of NCLT admitting REC's insolvency plea against Hiranmaye Energy, and said claims filed by BHEL against the debt-ridden thermal power company should be dealt with in accordance with the law. The National Company Law Tribunal (NCLT) on January 2, 2024, directed to initiate a Corporate Insolvency Resolution Process (CIRP) against Hiranmaye Energy, admitting the plea filed by REC, formerly known as Rural Electrification Corporation. Challenging this, BHEL moved the appellate tribunal NCLAT, where it filed two petitions. In the first plea, it challenged the admission of insolvency plea by the NCLT and also the order of January 5, 2024, in which PSU's intervention application filed by it was rejected. BHEL ...

IBBI amends resolution rules: Realty insolvency to be project-wise

Share of top 10 realty deals was 87% of total value of PE investments in first 9 months of FY24 (9MFY24)

IBBI amends norms to increase transparency in insolvency resolution process

Regulator IBBI has amended corporate insolvency resolution process norms, including making it compulsory to have separate accounts for each real estate project undergoing resolution and enabling the creditors' committee to constitute a monitoring panel to oversee implementation of the resolution plan. "With an aim to increase transparency and reduce disputes over valuation-related issues, the amendment provide for explaining the valuation methodology to the members of the CoC (Committee of Creditors) before the computation of estimates," as per the revised norms. The Insolvency and Bankruptcy Board of India (IBBI) also said that fair value may be made part of the information memorandum to foster informed participation in the process. The CoC will also have the freedom to decide not to share such information where such disclosure is not beneficial for the resolution. With respect to real estate projects, the regulator said the CoC can ask for separate resolution plans for each ...

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

Expert panel suggests adoption of voluntary mediation in insolvency cases

The committee also noted that not all scenarios under the IBC are fit for resolution through mediation. For instance, issues such as avoidance transactions are excluded

NCLT extends deadline for Go First's insolvency for another 60 days

The three parties who have expressed interest in the airline are expected to submit their resolution plan for the airline's revival by February 15

IBBI asks resolution professionals to share reports with creditors, debtors

By sharing reports, which contain evaluations and recommendations for the approval or rejection of the application, the IBBI aims to ensure transparency and informed decision-making

India's aviation sector needs to clarify insolvency laws, says ACG

India amended its insolvency laws last October to exclude leased aircraft from assets that can be frozen in a bid to address discrepancies between local and global rules

Go First's lenders to seek extension of insolvency process by 60 days

Under the country's Insolvency and Bankruptcy Code, the National Company Law Tribunal (NCLT) has the authority to extend the resolution timeframe to a maximum of 330 days

NCLT rejects Wilmington Trust's insolvency petition against SpiceJet

In a relief to low-cost carrier SpiceJet, the National Company Law Tribunal (NCLT) on Monday dismissed an insolvency petition filed against the company by aircraft lessor Wilmington Trust SP Services. A Delhi-based bench of NCLT comprising members Mahendra Khandelwal and Rahul Prasad Bhatnagar dismissed the petition of the aircraft lessor based in Dublin, Ireland. Wilmington moved the insolvency plea against SpiceJet in June 2023 over unpaid dues. Last month NCLT had dismissed an insolvency petition by another aircraft lessor, Willis Lease Finance Corporation, which was also claiming dues. SpiceJet faced insolvency pleas filed by its aircraft lessors, including Willis Lease, Aircastle Ireland Ltd, Wilmington, and Celestial Aviation. However, NCLT has issued notice only on the petition filed by Aircastle so far. Earlier, the Delhi High Court directed SpiceJet to pay USD 4 million to its two engine lessors, Team France 01 SAS and Sunbird France 02 SAS, by February 15.

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

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

Insolvency professionals can be crucial in resolution process: Report

Insolvency professionals can play a crucial role in the pre and post-Corporate Insolvency Resolution Process stages, according to a report. The report by the Indian Institute of Insolvency Professionals of ICAI (IIIPI) also highlighted various methods and processes to diagnose corporate distress at an early stage and suggested interventions to mitigate insolvency processes. Exploring the advantages of addressing stress early, the report -- Roles of Insolvency Professionals Across Insolvency Value Chain from Incipient Stage till Post-Resolution Stage -- delved into areas to identify and control the initial signs of distress, providing valuable insights for effective intervention. It also underscores the importance of addressing stress early to prevent the escalation of financial difficulties, positioning companies for long-term success. "This report will help the Insolvency Professionals (IPs) to manage the stress in companies at both, pre and post CIRP stages as they bring speciali

67% of ongoing corporate insolvency resolution cases cross 270-day timeline

Although IBC leaves little room for interference, objections by erstwhile promoters or the suspended board of corporate debtor, competing resolution applicants, and dissatisfied creditors are many

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

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

Delays in IBC erode value of assets, says RBI governor Shaktikanta Das

Das says cybersecurity threat remains a major challenge

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,