Page 15 - Insolvency And Bankruptcy Code

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

Guaranteeing personal guarantees

Through its recent judgment the apex court has rescued the institution of surety

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

NCLT extends insolvency process of grounded airline Go First by 90 days

The tribunal has also asked the resolution professional (RP) of the airline to submit a 90-day action plan

Go First lenders to vote on liquidation amid lack of suitors: Report

The proposal whether or not to liquidate the airline has been floated and with individual lenders will take the proposal to their boards and submit final votes in 10-15 days, the report said

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

Recovery rate from personal guarantors may rise: CareEdge Ratings

The Supreme Court upheld the constitutionality of IBC provisions on Personal Guarantors' Insolvency Resolution, dismissing over 200 petitions which challenged its legal validity

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

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

Future Retail's resolution professional files for liquidation before NCLT

The Corporate Insolvency Resolution Process (CIRP) was initiated against Future Retail by its lender Bank of India (BOI) following loan defaults

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

SC upholds validity of key provisions of Insolvency and Bankruptcy Code

The Supreme Court on Thursday upheld certain key provisions of the Insolvency and Bankruptcy Code (IBC) amid the claim of several petitioners that that they are violative of fundamental rights like the right to equality of those against whom insolvency proceedings are initiated. A bench comprising Chief Justice D Y Chandrachud and justices J B Pardiwala and Manoj Misra decided as many as 391 petitions challenging various provisions of the IBC. Many pleas challenged the constitutional validity of sections 95(1), 96(1), 97(5), 99(1), 99(2), 99(4), 99(5), 99(6) and 100 of the Code. These provisions deal with the various stages of insolvency proceedings against a defaulting firm or individuals. Upholding the provisions to be constitutionally valid, the bench held that they did not suffer from arbitrariness as contended. "The IBC cannot be held to be operating in a retroactive manner in order to hold it violative of the Constitution. Thus, we hold that the statute does not suffer from

NCLAT adjourns hearing on IDBI's insolvency plea against Zee to Dec 6

The National Company Law Appellate Tribunal (NCLAT) on Wednesday adjourned its hearing to December 6 over the plea of IDBI Bank seeking to initiate insolvency proceedings against Zee Entertainment. A three-member NCLAT bench deferred the hearing after the counsel appearing in the matter sought an adjournment to complete the pleadings. IDBI Bank in its plea has challenged the order of the Mumbai bench of the National Company Law Tribunal (NCLT), which, on May 19, 2023, had set aside the insolvency plea against the media major, observing that it was barred under Section 10A of the Insolvency & Bankruptcy Code (IBC). In its order, the NCLT bench had said that ZEEL, which was the corporate guarantor for the loan availed by Siti Networks -- the principal borrower of IDBI Bank -- has committed a default. However, the default was committed during the timeline specified under section 10A of the IBC. Section 10A mandates no application for initiation of a corporate insolvency resolution ..

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