Page 18 - Insolvency And Bankruptcy Code

Lessor Aircastle files case against SpiceJet to initiate insolvency process

The first hearing of Aircastle's case will take place on Monday at the Delhi bench of NCLT

Safeguards for project-wise insolvency in real estate on the cards

The MCA said such projects will be recognised as distinct from the larger entity for the limited purpose of resolution

Go First seeks interim moratorium, NCLT says no such provision under IBC

Go First told the court that the primary aim of filing for insolvency was to revive the airlines and it seeks a comprehensive debt restructuring

Go First Airways owes financial creditors $798 mn, shows bankruptcy filing

Lenders were not aware of the airline's plans to file for voluntary insolvency and will meet soon to take stock of the situation, the report said

Easing the process: Guidelines for NCLT to deal with IBC cases in the works

MCA also planning to AI system for case management

48 firms selected as eligible bidders for Future Retail insolvency process

As many as 48 companies, including Reliance Retail, Jindal Power Ltd and Adani group, are in the final list of eligible prospective resolution applicants for acquiring debt-ridden Future Retail Ltd. The Resolution Professional of Future Retail Ltd (FRL), which is currently going through an insolvency resolution process, on Monday came out with the final list of 'Eligible Prospective Resolution Applicants'. On April 10, FRL's RP updated a list of 49 companies, which had submitted Expressions of Interest (EoIs) after the company's lenders decided to invite fresh bids after dividing its assets into clusters. Some of the other players who had submitted EoIs include WHSmith Travel Ltd, Sahara Enterprises, Century Copper Corp, Greentech worldwide, Harsha Vardhan Reddy, J C Flowers Asset Reconstruction Pvt Ltd, Pinnacle Air Pvt Ltd and Universal Associates. Except Bommidala Enterprises, an Andhra Pradesh-based manufacturer of tobacco products, all companies have been included in the final

Govt to introduce bills to amend insolvency laws in Parl's monsoon session

The government is planning to introduce bills to amend the companies and insolvency laws during the monsoon session of Parliament, a senior official said on Thursday. The session is likely to commence in late July or August. The corporate affairs ministry is implementing the Companies Act and the Insolvency and Bankruptcy Code (IBC). According to the official, amendments are being planned to the two laws, and bills in this regard are expected to be introduced in the monsoon session. Details about the proposed changes could not be immediately ascertained. On January 18, the ministry proposed a raft of changes to the IBC, including fast-tracking the process, expanding the scope of the pre-packaged framework and developing an electronic platform with minimal human interface. The ministry has received comments from the stakeholders on the changes proposed to the IBC. The IBC, which came into force in 2016, provides for a market-linked and time-bound resolution of stressed assets. It

Future Retail's creditors seek 90 days extension to concluding insolvency

Lenders of debt-ridden Future Retail Ltd (FRL) has sought an extension of 90 days for concluding the Corporate Insolvency Resolution Process (CIRP) of the company. The resolution professional of FRL has filed an application before the Mumbai bench of the National Company Law Tribunal (NCLT) "seeking exclusion of a period of 90 days from CIRP of FRL, and consequent extension from April 16, 2023, to July 15, 2023, for concluding the CIRP of FRL." The CIRP was initiated against FRL by NCLT on July 20, 2022, following loan default. The Insolvency and Bankruptcy Code (IBC) time frame for resolution is 330 days, inclusive of the time taken for litigation. As per Section 12(1) of the Code, the CIRP shall be completed within a period of 180 days from the date of initiation. However, NCLT may grant a one-time extension of 90 days. The maximum time within which CIRP must be mandatorily completed, including any extension or litigation period, is 330 days. Besides, the resolution professional

Bankruptcy resolutions yielding lower realisations, taking longer: Report

Bankruptcy cases are taking longer to resolve and yielding lower values for lenders, a credit rating agency analysis said on Monday. The average number of days taken to close a case either through a resolution process or liquidation was at its highest at 588 days for financial creditors if one were to look at official data for the first nine months of the current fiscal, it said, adding that it was 531 days in FY22 and 463 days in FY21. The agency analysed official data released by the Insolvency and Bankruptcy Board of India to arrive at its findings. The stretched timelines have resulted in admissions outpacing case closures every year since FY18, India Ratings and Research said, adding that the only exception to this was FY21 where admission of cases got restricted on account of the pandemic. As against the 270 days stipulated in the Insolvency and Bankruptcy Code, the timeline for the Corporate Insolvency Resolution Process (CIRP) overshoots the mandatory timeline in 63 per cen

SG Tushar Mehta questions locus of individual shareholder in IBC

Citing several judgments, the SG said only the company can speak for the shareholder

Only 15% insolvency cases reach resolution during October-December 2022

In 56 cases, the resolution plan was rejected for non-compliance and in the remaining 16 cases, the debtor contravened provisions of the resolution plan

Srei promoters dispute insolvency proceedings; next hearing on March 31

Government had suspended fresh insolvency proceedings through an ordinance in June 2020

Lenders to miss March-end deadline to resolve key insolvency cases

Once an account is settled with the highest bidder paying their bid amount, then it frees part of bank's locked fund in an account which could be used for lending purposes

IBC provisions cannot be turned into debt recovery proceeding: NCLAT

The National Company Law Appellate Tribunal on Monday said the provisions of the Insolvency & Bankruptcy Code (IBC) cannot be turned into a debt recovery proceeding as the idea of this special code is to bring a debtor company back on its feet. Setting aside an order of the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against Coppertun Brewing, the appellate tribunal observed it "clearly fell in error" in admitting the plea "while turning a blind eye" on the evidence of pre-existing disputes between parties. When an operational creditor seeks to initiate an insolvency process against a Corporate Debtor, it can only be done in clear cases where no real dispute exists between the two, said the National Company Law Appellate Tribunal (NCLAT) bench, comprising Chairperson Justice Ashok Bhushan and Member Barun Mitra. "What also heavily weighs on our mind is that both in terms of the objectives of the IBC and settled proposition of law as expressed and ...

ZEE settles dispute with IPRS, insolvency petition withdraw by artist body

Leading broadcaster ZEE Entertainment Enterprises Ltd (ZEEL) on Monday said it has "mutually" settled disputes with the Indian Performing Rights Society (IPRS) and the insolvency petition filed against by the latter has been withdrawn before NCLAT. "The Company and IPRS have mutually entered into the settlement agreement today on such agreed terms by which all disputes and claims have been settled between the Company and IPRS and accordingly IPRS has agreed to withdraw the aforesaid insolvency petition filed by them," a regulatory filing by ZEEL said. Though ZEEL has not shared the terms and conditions of settlement but said it is "as per the settlement agreement entered into by the Company and IPRS. "There is no penalty paid and no material impact on the financial position of the Company," it said. Earlier this January, IPRS moved the insolvency tribunal NCLT against ZEEL claiming a default of Rs 211.41 crore. IPRS, which is a non-profit society comprising authors, composers and

NCLAT dismisses plea challenging insolvency against Avantha Power

The National Company Law Appellate Tribunal (NCLAT) has set aside the petition filed against the initiation of corporate insolvency resolution process against Avantha Power and Infrastructure, which was a corporate guarantor for loans availed by Korba West Power Company. The appellate tribunal dismissed the plea by Anil Bhargava, director of the suspended board of Avantha Power and Infrastructure Ltd (APIL), and said it was "fully in agreement with the reasons assigned" by the NCLT for admitting the insolvency plea. The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on August 16, 2021, had admitted an insolvency plea against APIL, over a petition filed by Axis Bank claiming a due of Rs 480.54 crore. The loan pertained to Korba West Power Company Ltd (KWPCL), which was the principal borrower, and the funds were for setting up a 2x600 MW Thermal Power Plant in Chhattisgarh. To part finance the project, KWPCL had availed loan facilities from a consortium of lenders led b

ARC industry will need to reinvent itself

The RBI unveiled new regulations in October 2022, which enhanced governance standards and permitted ARCs to act as resolution applicants under the IBC's ambit

NCLAT stays insolvency against Zee Entertainment on Punit Goenka plea

Goenka moved the NCLAT on Thursday, a day after the Mumbai bench of the NCLT admitted insolvency proceedings against Zee on a plea filed by IndusInd Bank -- a financial creditor of Zee

Merger with Sony will get stuck in insolvency proceedings: Zee group

India's Zee Entertainment Enterprises Ltd told a tribunal on Friday its merger with a local unit of Japan's Sony Group Corp will "get stuck" due to the initiation of insolvency

Merger with Sony will get stuck on insolvency proceedings, says ZEEL

The comments came as Zee's chief executive, Punit Goenka, on Thursday said in a statement that he expected a timely completion of a merger between Zee and Sony