Page 2 - Liquidation

Sebi gives offshore funds additional 7 mths to liquidate holdings: Rpts

"There is no immediate deadline or cliff for offshore funds to liquidate any holdings," said the first of the two sources

NCLAT sets aside notice against lenders over liquidation without bids

The National Company Law Appellate Tribunal (NCLAT) on Wednesday set aside an order of the NCLT, which had issued a show cause notice for recommending liquidation of realty firm SARE Realty Projects, without exploring the possibility of finding a buyer. The appellate tribunal said there is an "error in the approach" of the National Company Law Tribunal (NCLT) for taking a decision regarding the liquidation of a corporate debtor (CD) and the lenders have to complete all the steps regarding resolution. "The CoC has the jurisdiction to pass the order of liquidation of the CD, approving it by not less than 66 per cent of the voting share, but it should be before the confirmation of the resolution plan," said NCLAT. Earlier, the New Delhi Bench of NCLT had on March 16, 2023 issued a show cause notice to the lenders asking why penalty stipulated under Section 65 of the Insolvency & Bankruptcy Code should not be imposed on them. NCLT had said that "it was prima facie of the opinion that .

NARCL's offer prices lower than the liquidation value, say bankers

PSBs say this is the reason for slow progress of NPA sale

Zomato begins liquidation of its Vietnam-based step-down subsidiary

Zomato's revenue from operations rose 71 per cent year-on-year (Y-o-Y) to Rs 2,848 crore in Q2, up from Rs 1,661 a year ago. It had reported a revenue of Rs 2,416 in the previous quarter

Centre says over 106,000 companies voluntarily exited in last five years

More than 1 lakh firms voluntarily exited under the companies law in nearly five years, the government said on Monday. Besides, many companies have sought voluntary liquidation under the Insolvency and Bankruptcy Code (IBC). "From FY 2018-19 to FY 2023-24 (up to 30th November, 2023) 1,06,561 companies have exited voluntarily under section 248(2) of the Companies Act, 2013. "From FY 2018-19 to FY 2023-24 (up to 30th September 2023) final reports of 1,168 companies have been submitted by liquidators under section 59 of the Insolvency and Bankruptcy Code, 2016 (Code), of which final dissolution orders have been passed by NCLT in 633 cases during the said period," Union Minister Rao Inderjit Singh told the Lok Sabha. Section 248(2) of the Companies Act pertains to voluntary exit of companies while Section 59 of the IBC relates to voluntary liquidation of companies. In the last five years, Singh said the time taken for voluntary exit under Section 248(2) of the Companies Act, 2013 has

Evergrande risking liquidation if creditors veto plan for handling debts

A Hong Kong court will convene a hearing on Monday on troubled Chinese property developer Evergrande's plans for restructuring its more than USD 300 billion in debts and staving off liquidation. The company, the world's most indebted property developer, ran into trouble when Chinese regulators cracked down on excessive borrowing in the real estate sector. Last month, the company said Chinese police were investigating Evergrande's chairman, Hui Ka Yan, for unspecified suspected crimes in the latest obstacle to the company's efforts to resolve its financial woes. The Hong Kong High Court has postponed the hearing over Evergrande's potential liquidation several times. Judge Linda Chan said in October that Monday's hearing would be the last before a decision is handed down. Evergrande could be ordered to liquidate if the plan is rejected by its creditors. In September, Evergrande abandoned its initial debt restructuring plan after authorities banned it from issuing new dollar bonds, w

Future Retail heads for liquidation as lenders fail to get suitable buyer

Future Retail, once the crown jewel of Kishore Biyani-led Future Group, is now heading for liquidation as its lenders could not get any reasonable buyer of the debt-ridden firm. As the Committee of Creditors (CoC) rejected the sole resolution plan submitted by Space Mantra after four extensions in the deadline to complete the corporate insolvency resolution process (CIRP), the RP of the company has now approached NCLT to initiate liquidation of Future Retail (FRL). "The resolution plan submitted by Space Mantra Private has not been approved by CoC of FRL, kindly note that, the Resolution Professional (RP) has filed an application, before the National Company Law Tribunal, Mumbai Bench, for initiation of liquidation of FRL," said a regulatory filing from FRL. Last month FRL had informed that Rs 550 crore bid submitted by Space Mantra for FRL, failed to get the required number of votes in the e-voting process of the CoC. The NCLT had granted four extensions to FRL for completion of C

Jeera prices correct sharply ahead of sowing on liquidation of position

The government's production estimates though are much higher on jeera than what traders and market experts said

Insolvency and Bankruptcy Board clarifies calculation of liquidator's fees

IBBI also said that there was a gap in understanding in the market about what components of the liquidation cost are to be excluded to derive "other liquidation cost"

NCLT orders liquidation of Overnite Express with immediate effect

The NCLT on Monday ordered the liquidation of Overnite Express after admitting the plea of its lender Deutsche Bank AG against a resolution plan submitted by a member of the debt-ridden company's suspended board. While the Insolvency and Bankruptcy Code (IBC) bars promoters of a corporate debtor from submitting a resolution plan under the CIRP, there is relaxation for MSMEs. The resolution plan was submitted citing that the company is an MSME under the Corporate Insolvency Resolution Process. A two-member bench of the National Company Law Tribunal (NCLT) ordered the liquidation of corporate debtor Overnite Express "with immediate effect" as a time frame of more than 330 days of the Corporate Insolvency Resolution Process (CIRP) has already elapsed. It also appointed Tarun Jain as liquidator of the corporate debtor to carry on the liquidation process as per the relevant provision of the IBC 2016. A resolution plan was submitted on behalf of a member of the suspended board of Overni

Sebi rolls out approach for valuation of AIFs for liquidation schemes

Markets regulator Sebi on Thursday came out with a standard approach for valuing the investment portfolio of Alternate Investment Funds (AIFs) along with modalities for launching liquidation schemes, a move that will benefit investors. In addition, all schemes of AIFs will have to be issued in dematerialised (demat) form, the Securities and Exchange Board of India (Sebi) said in three separate circulars. Existing AIFs with a corpus of more than Rs 500 crore and any new AIFs are required to dematerialise their units by October 31, 2023, and after this, issuance of units will be done in demat form. Other AIFs with a corpus of less than or equal to Rs 500 crore are required to dematerialise their units by April 30 next year. Under the standardised approach to valuation, Sebi said that portfolio valuation of securities would be carried out as per guidelines endorsed by the AIF industry association. Presently, AIF Regulations focus on disclosures to investors and do not prescribe any ..

Workers' dues to not get priority in case of IBC liquidation: SC

Justice M R Shah and Justice Sanjiv Khanna dismissed a batch of petitions challenging the constitutionality of Section 327(7) of the Companies Act, 2013

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

Silvergate plans to wind down bank ops, liquidate after crypto metldown

Silvergate collapsed amid scrutiny from regulators and a criminal investigation by the Justice Department's fraud unit into dealings with fallen crypto giants FTX and Alameda Research

Banks, bondholders to recover less from insolvencies under new proposal

Secured creditors, typically banks and bondholders, would continue to have first claim on proceeds of an insolvency resolution plan, but only up to the liquidation value of the corporate debtor

A 'waterfall' for insolvency resolution

Honouring secured contracts and mimicking the liquidation waterfall could promote a judicious system of distribution of proceeds and minimise disputes

Individual insolvency misuse by personal guarantors in govt cross hairs

Draft IBC amendments propose to remove 'perverse incentives'

Banks using quality liquid assets to fund loan growth: RBI report

Credit growth in the system has touched a decade high, a level seen last in 2011

Realisation through IBC 201% of liquidation value as of Sept: RBI

SARFAESI and Debt Recovery Tribunals have yielded recovery rates comparable to the IBC mechanism, says Trend and Progress Report

Lenders ask Byju's to liquidate US assets to part-repay $1.2-bn loan

The company is seeking a restructuring of the loan, but it faced steep losses. Around this time, some activist investors bought some of the bonds