On 26 June 2020, the Corporate Insolvency and Governance Act (the “CIGA”) entered into force. We summarised the key terms of the proposed legislation in our previous client alert (link to previous alert).
In a significant judgment dated 9 June 2020 titled ‘Indus Biotech Private Limited v.
Introduction
Background
Ever since the Hon’ble Finance Minister of India announced the suspension of initiation of corporate insolvency under the Insolvency and Bankruptcy Code 2016 (IBC) in wake of the COVID-19 pandemic, there have been several market speculations about the nature and extent of the proposed suspension and its implications. With the promulgation of the amendment ordinance to IBC, most of these speculations have been put to rest, however owing to the language of the Ordinance, a new set of issues may have arisen.
On 3 June 2020, the Corporate Insolvency and Governance Bill was debated by the Committee of the Whole House of Commons. This follows on from the first reading in the House of Commons on 20 May 2020. This is the bill which enacts many of the measures referenced in the government's announcements earlier this year.
On 20 May 2020, the Corporate Insolvency and Governance Bill had its first reading in the House of Commons. This is the bill that enacts many of the measures referenced in the government's announcements earlier this year.
May Restructuring Activity
May 4 – OneWeb Global Ltd., which filed for Chapter 11 bankruptcy protection in the United States in March, received multiple initial letters of interest from potential purchasers. Final binding bids are due June 26, along with a deposit equal to 10% of bid value, and an auction is scheduled for July 2.
Introduction
On 20 May 2020, the Corporate Insolvency and Governance Bill had its first reading in the House of Commons.This is the bill that enacts many of the measures referenced in the government's announcements earlier this year.