Page 14 - Insolvency And Bankruptcy Code

IBBI suggests project-based insolvency, excludes allotted property

IBBI has also proposed project-based insolvency to attract multiple bidders for different projects in real estate insolvencies

In IBC, no automatic secured creditor tag for govt's statutory dues

The Ministry of Corporate Affairs (MCA) would consider issuing this as a clarification, if needed, following the recent Supreme Court (SC) judgment in the Rainbow Papers case, the senior official said

Power ministry nudges state govts, gencos to take up insolvent assets

The power ministry is looking at a quicker turnaround of these stressed power plants and enhancing power supply

Go First's aircraft, engines can be returned to lessors: DGCA tells HC

According to a report, Jindal Power, which had shown its interest in the airline, may not go ahead with its financial bid

Monthly review, disclosure of fair value: IBBI bats for transparency

IBBI has proposed that creditors dissenting on a resolution plan under the IBC should be entitled to claim lesser of the two amounts - the resolution amount or the liquidation value

Changes to insolvency law on leased aircraft to apply retrospectively: DGCA

The clarification of India's recent amendment to its insolvency law potentially paves the way for lessors of bankrupt budget carrier Go First to take back their planes

NCLAT adjourns hearing of Jet Airways' insolvency case to November 9

Insolvency appellate tribunal NCLAT on Wednesday adjourned the hearing on the Jet Airways matter to November 9 over the issue of transfer of ownership of the grounded air carrier to the Jalan Kalrock Consortium (JKC). When the matter was called for hearing on Wednesday, Additional Solicitor General N Venkataraman informed the two-member bench that the identical matter is also listed before the Supreme Court for hearing next week on November 7. Venkataraman, who is representing lenders including SBI and other banks in this matter, requested the bench to adjourn and list it for hearing after that, which was accepted by the bench headed by Chairperson Justice Ashok Bhushan. Though, senior advocate Krishnendu Dutta appearing for JKC, requested NCLAT to proceed and said the matter before the Supreme Court on November 7 had no direct connection with the matter before the appellate tribunal. Lenders of Jet Airways approached the Supreme Court last month over the NCLAT order granting more

High interest rates causing surge in company insolvencies in England

Official figures Tuesday showed the number of company insolvencies in England and Wales jumped 10% year-on-year to 6,208 in the third quarter

NCLAT dismisses plea to initiate insolvency proceedings against Inox Wind

The National Company Law Appellate Tribunal (NCLAT) has dismissed the plea to initiate insolvency proceedings against Inox Wind by an operational creditor of the company. A three-member bench of the insolvency appellate tribunal also upheld the orders of the Chandigarh Bench of the National Company Law Tribunal (NCLT), which on May 22, 2023, rejected the plea of GRI Towers India. While dismissing the plea, the NCLAT again said that the Insolvency & Bankruptcy Code (IBC) are "not proceedings for recovery of contractual dues". The bench said it was apparent from the facts of the present case the operational creditor has initiated proceedings for recovery of its contractual dues arising out of a contract between the parties. "Suit for recovery of dues was already filed by the Appellant, which was withdrawn by the Appellant," the NCLAT observed. GRI, which is in trade and service relating to the business of providing equipment and manpower, had approached the NCLT, alleging a default

Realty books 19% of total realisation via insolvency proceedings: Report

Real estate accounts for nearly 19 per cent of the total realisation under insolvency proceedings, according to a report by Anarock and Khaitan & Co. Real estate consultant Anarock and law firm Khaitan & Co on Wednesday released a report 'Update on IBC (Insolvency and Bankruptcy Code) in Indian Real Estate'. "The real estate sector on a reported basis accounted for more than 50 per cent of the total realisations under IBC. However, subsequent to the release of data by IBBI, a large key case went sub-judice following the admission of an appeal before the NCLAT, resulting in the real estate sector accounting for 18.8 per cent of total realisations under IBC," Anarock said in a statement. Anarock's arm Anarock Capital MD and CEO Shobhit Agarwal said the total number of corporate insolvency resolution process (CIRP) cases filed has risen from an average of 208 per quarter in FY22 to an average of 313 in FY23. "FY24, however, has commenced on a weak note with 238 cases admitted ...

Govt may clarify prospective clause of IBC exemption for aviation

The High Court has asked the government for its response to a plea by a Gofirst lessor

Jindal Power submits expression of interest for insolvent Go First

Go First's resolution professional invited EoIs for the carrier's sale in July. Sources have confirmed that JPL has filed an EoI for Go First in the National Company Law Tribunal (NCLT)

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

Corporate affairs ministry exempts aviation from IBC's moratorium clause

Section 14 of the IBC declares a moratorium on proceedings, transfer or disposal of any of the assets of the company from the date of commencement of its insolvency

Govt changes insolvency rules to exclude leased aircraft from moratorium

Some provisions of the Indian Bankruptcy Code will not apply to transactions relating to aircraft, aircraft engines, airframes and helicopters, the notice showed

The real estate rollercoaster

From grappling with rising inventory, the market now has swung to the opposite extreme, but reasons for the euphoria are unclear

Future Retail CoC rejects Space Mantra bid, NCLT extends insolvency period

The lenders of Future Retail Ltd have rejected the bid submitted by Space Mantra for the debt-ridden firm, which is currently going through Corporate Insolvency Resolution Process (CIRP). The Resolution Plan submitted by Space Mantra for Future Retail Ltd (FRL), failed to get the required number of votes in the e-voting process of the Committee of creditors (CoC). It was put "for the consideration of the CoC on July 19, 2023... and pursuant to the decision taken by CoC through e-voting, concluded on 30th September 2023 at 9 PM (IST), the resolution plan submitted by Space Mantra Private Limited has not been approved by CoC", FRL said in a regulatory filing on Monday. It further added: "In view of the resolution plan not having been approved by the CoC, the next steps would be taken in accordance with the Insolvency & Bankruptcy Code 2016." Space Mantra was the single bidder for FRL. According to some media reports, Space Mantra had offered around Rs 550 crore, which was very close

300 IBC cases set to be resolved this year: Corporate affairs secretary

Creditors have recovered around Rs 3 trillion through the Insolvency and Bankruptcy Code (IBC), and the recoveries stood at more than Rs 51,000 crore last year

Resolutions under insolvency law likely to touch 300 this year: IBBI chief

The number of resolutions of stressed assets under the insolvency law is likely to touch 300 this year, IBBI Chairperson Ravi Mital said on Sunday and urged resolution professionals to speed up the cases. Creditors have recovered around Rs 3 lakh crore through the Insolvency and Bankruptcy Code (IBC) and the recoveries stood at more than Rs 51,000 crore last year, when the number of resolutions rose 80 per cent to 180, Mital said. He was speaking at an event to mark the seventh annual day of the Insolvency and Bankruptcy Board of India (IBBI) in the national capital. The IBBI is a key institution in implementing the IBC. Mital said the IBC is a factor in the reduction of non-performing assets and emphasised that the law is not a recovery mechanism but a resolution mechanism. Till August this year, 135 resolutions have happened and the number is likely to touch 300 by year-end, Mital said and asked resolution professionals to increase their speed for faster resolutions. Corporate