Page 23 - Insolvency And Bankruptcy Code

We cannot afford to lose sheen of insolvency law, says FM Sitharaman

Union Minister Nirmala Sitharaman on Saturday said insolvency law cannot lose its "sheen". Sitharaman, who is in charge of finance and corporate affairs ministries, was speaking at a function in the national capital to mark the sixth annual day of the Insolvency and Bankruptcy Board of India (IBBI). Speaking about the Code over the last six years and the way forward, she also said that "we cannot have stress signals go unnoticed". IBBI is a key institution in the implementation of the Insolvency and Bankruptcy Code (IBC), which provides for a market-linked and time-bound resolution of distressed firms. The code came into force in 2016. National Company Law Tribunal President Chief Justice (Retd) Ramalingam Sudhakar and Competition Commission of India (CCI) Chairperson Ashok Kumar Gupta, among others, were present. As many as 1,934 corporate debtors have been rescued through the Code till June this year. These include 517 through resolution plans, 774 through appeal or review or ..

Companies can now register themselves as insolvency professionals

Earlier, the regulations only allowed the IPEs to provide support services to insolvency professionals

Welspun bid for ABG Shipyard among highest for assets under liquidation

Gujarat govt welcomes the winning offer which could boost ship building activity under the new 2019 port policy

Insolvent companies could lose spectrum under the new Telecom Bill

Spectrum assigned to the insolvent company will revert to government control in case it fails to comply with these conditions

IBBI fixes timelines for the liquidation process to reduce delays

If any claim is not filed during the liquidation process, the amount of claim collated during CIRP should be verified by the liquidator

IBBI amends regulation to boost value of stressed cos undergoing insolvency

In a move that will provide better market-linked solutions for stressed companies, watchdog IBBI has amended its regulations to allow sale of one or more assets of an entity undergoing insolvency resolution process, besides other changes. Also, the Committee of Creditors (CoC) can now examine whether a compromise or an arrangement can be explored for a corporate debtor during the liquidation period. The Insolvency and Bankruptcy Board of India (IBBI) has amended the regulations with the "objective to maximise value in resolution" and they came into effect from September 16. As many as 1,703 Corporate Insolvency Resolution Processes (CIRPs) ended up in liquidation till the end of June this year. The regulator has permitted a resolution professional and the CoC to look for sale of one or more assets of the corporate debtor concerned in cases where there are no resolution plans for the whole business. The Insolvency and Bankruptcy Code (IBC) provides for a market-linked and time-boun

IBBI taking steps to address issues related to resolution process: Official

The Insolvency and Bankruptcy Board of India (IBBI) is taking steps to address various issues and concerns related to insolvency resolution process, an official said on Friday. IBBI is a key institution in implementing in the Insolvency and Bankruptcy Code (IBC). Sandip Garg, Executive Director at IBBI, said the Code has kept pace with the emerging market requirements and will remain pertinent for all times to come. He was speaking at a conference organised by industry body Assocham. IBBI is deliberating on several concerns of IBC and Corporate Insolvency Resolution Process (CIRP), and is taking steps to address them, Garg said. "The Code envisages resolution of the firm as a going concern, as closure of the firm destroys organisational capital. It facilitates continued operation of the firm as a going concern by moratorium on institution or continuation of suits or proceedings against the firm during the resolution period. "It enables raising interim finances which has super pri

IBBI to fix minimum fee slabs from Oct 1 for insolvency professionals

The new rules have also paved the way to allow lenders to pay resolution professionals based on how soon a resolution plan is finalised

Policy debate: Decoupling freebies from politics

Freebies pose serious fiscal challenges, but they need an economic policy response

Central Bank withdraws IBC case as Aban Offshore pays one-time settlement

The company has repaid outstanding principal of Rs 121.78 crore to the bank, is in talks with other lenders for debt resolution plan

NCLAT sets aside insolvency proceedings against Mack Star Marketing

Appellate tribunal NCLAT has set aside insolvency proceedings against Mack Star Marketing initiated by the NCLT Mumbai after observing that the term-loan provided by Yes Bank to it was an "eye-wash" and "collusive in nature". A two-member bench held such collusive transactions do not fall within the ambit of the definition of Financial Debt as defined under Section 5(8) of the Insolvency & Bankruptcy Code and therefore Suraksha Asset Reconstruction cannot be termed as a Financial Creditor. The NCLAT observed that out of Rs 147.6 crore -- sanctioned by Yes Bank in Mack Star's name for the purpose of renovating 'Kaledonia' a two-year-old building constructed at a cost of Rs 100 crore -- more than 99 per cent of the amount was routed back to Yes Bank either on the same day or within a very short period. "The chequered history of the loan transactions and collusive arrangements indulged by Yes Bank demonstrates that the Term Loans disbursed in the name of Mack Star is an eye-wash' and

After lay-offs, edtech startup Lido Learning files for insolvency

Lido Learning's board of directors has passed a special resolution to file an application under section 10 of IBC, 2016

RIL inches closer to acquiring Lanco Amarkantak with Rs 1,960 cr cash offer

If the deal goes through, it will be the third big-ticket acquisition by the Ambani firm under IBC

Srei group receives two resolution plans for debt-ridden companies: Report

Two bids have been received for two debt-ridden Srei group companies under the insolvency resolution process and one of the bids is estimated to be worth around Rs 15,000 crore, according to sources. Srei Infrastructure Finance Limited and Srei Equipment Finance Limited are undergoing a resolution process under the Insolvency and Bankruptcy Code. "This is to inform you that the 13th (Thirteenth) meeting of the Consolidated Committee of Creditors of Srei Infrastructure Finance Limited and Srei Equipment Finance Limited was duly convened and conducted on Monday, August 29, 2022, from 5:15 P.M. onwards. The meeting was conducted virtually. "It is further informed that the Administrator of the Corporate debtor has received two (2) 'Resolution Plans' pursuant to the Request for Resolution Plan dated April 1, 2022, (as modified on June 30, 2022) issued by the Administrator within the deadline for submission as given to the Prospective Resolution Applicants (PRAs)," a regulatory filing sai

SC ruling on IBC will have overriding effect over indirect tax recoveries

The move, according to tax experts, will set a precedent for matters related to recoveries

NARCL to buy loans of five distressed companies, lenders agreement awaited

In July, NARCL had proposed to take distressed assets of 17 firms worth Rs 93,249 crore including included five firms of the Future Group

Banks took a haircut of 69 per cent while resolving IBC cases: Report

Haircuts are defined as the losses incurred by the creditors (banks in this case) on resolving the bad debts or stressed assets

Financial creditors to Future Retail place claims worth Rs 21,000 cr

60% of such claims are from state-owned banks and other creditors, shows data on company's website

Top Headlines: Common charger for all mobiles; banks rush to woo depositors

At a time when growth in bank credit is outstripping that of deposits, several lenders, including the country's largest bank, State Bank of India (SBI), have raised deposit rates ahead of the festival

Centre likely to introduce the IBC amendment bill in winter session

The changes will will make amends to the cross-border insolvency regime. Among other changes, the bill will make it easier for overseas creditors to participate in the legal proceedings in India