Cash-strapped Indian airline Go First filed for bankruptcy proceedings on Tuesday, blaming "faulty" Pratt & Whitney engines for the grounding of about half its fleet, Reuters reported. The move marks the first major airline collapse in India since Jet Airways filed for bankruptcy in 2019, and underscores the fierce competition in a sector dominated by IndiGo and the entry of newer operators such as Akasa Air.
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A Hinduja Group firm on Wednesday emerged as the highest bidder with an offer of Rs 9,650 crore to take over debt-ridden Reliance Capital in the second round of auction, sources said. The bid by IndusInd International Holdings Ltd (IIHL) is higher than Rs 8,640 crore offer made by Torrent Investments in the first round of auction held in December last year. The other two suitors -- Torrent Investments and Oaktree -- did not participate in the second round of auction, sources said. An e-mail sent to Hinduja Group for comment remained unanswered.
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A dozen entities, including Silver Stallion of Mauritius, FPI Opportunities Fund of Singapore and listed companies C.E. Info Systems and 3i Infotech India, have shown interest in acquiring bankrupt defence-focused software developer Rolta India, said people aware of the development, the Economic Times of India reported. Other bidders to have submitted expressions of interest (EoIs) to the resolution professional Mamta Binani include Rashmi Metaliks, Rohstoffe International, Lloyds Metals and Energy, Varanium Cloud, and three individuals.
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Zee Entertainment Enterprises Ltd. has started settlement talks with its creditors to repay debts and remove the last hurdle in completing a merger with the Sony Group that would create a $10 billion media giant, Bloomberg News reported. The Indian television network has offered IDBI Bank Ltd., one of the creditors that moved insolvency court, to repay a loan of about 1.49 billion rupees ($18.1 million) in tranches, the people said, asking not to be named as the information isn’t public. Zee’s founders are in separate discussions with Axis Bank Ltd.
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The NCLT has granted Future Retail Ltd (FRL) an extension of 90 days for concluding the Corporate Insolvency Resolution Process (CIRP) of the company, the Economic Times of India reported. Allowing FRL's plea the Mumbai bench of the National Company Law Tribunal (NCLT) has extended the deadline to July 15, 2023, for concluding the CIRP of FRL. "... NCLT on April 13, 2023, heard the application and granted the said exclusion of 90 days from CIRP of FRL and consequent extension for completion of CIRP till July 15, 2023," said a regulatory filing from the company.
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The National Company Law Tribunal (NCLT) in Bengaluru has admitted Mantri Developers Pvt. Ltd., a Bengaluru-based real estate firm, into the insolvency process and appointed Ahsan Ahmad as the insolvency resolution professional (IRP) to oversee the proceedings, the Economic Times of India reported. The decision follows an application by Indiabulls Housing Finance Ltd, which claimed the developer defaulted on dues exceeding Rs 456.68 crore ($6.2 million), including principal and interest.
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India's bankruptcy court has allowed the acquisition of Anudan Properties by Mumbai-based developer KGK Realty (India). The Committee of Creditors (CoC) approved KGK Realty's resolution plan with 76.35% voting, the Economic Times of India reported. Other developers such as Aanya Real Estate and a consortium of Ashdan Properties, and NNP Buildcon had also submitted revival plans for the company. The development is an indication of the rising trend of several established developers with sound financials scouting for deals in the property sector through the bankruptcy process.
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Lenders of debt-ridden Reliance Capital (RCap) may consider extending the deadline for completing the resolution process till May 30 this year, the Economic Times reported. The current deadline ends on April 16. Considering the fact that the second round of auctions is yet to take place, it is not possible to wrap up the resolution process within the current deadline. Earlier this week, lenders postponed the second auction to April 11. The deadline to complete the resolution process of RCap has been extended multiple times in the past.
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Raghuram Rajan — the former International Monetary Fund chief economist who predicted the global financial crisis more than a decade ago — warned that the banking system is headed for more turmoil after the rescues of Silicon Valley Bank and Credit Suisse, Times of India reported. Rajan, who was also governor of Reserve Bank of India, said a decade of easy money and a flood of liquidity from central banks has caused an “addiction” and a fragility within the financial system as policy makers tighten policy.
Lenders of debt-ridden Reliance Capital have postponed the second auction to April 11 for which three suitors have expressed interest to participate, the Indian Express reported. Earlier, banks had fixed the second auction date as April 4. According to sources, the bidders who have confirmed their participation in the second round of auction are IndusInd International Holdings Ltd. of Hinduja Group, Torrent Investment and Singapore-based Oaktree.