State-owned lenders will soon evaluate the performance of legal firms engaged by them for insolvency and bankruptcy cases, the Economic Times of India reported. The move comes after government expressed concerns over large haircuts and delays in resolution under the Insolvency & Bankruptcy Code and directed lenders to build an effective framework for monitoring the progress of legal processes. Since the roll out of IBC in 2016, creditors have recovered 32.6% of their admitted claims against large, stressed firms.

Shares of Zee Entertainment Enterprises Ltd. recovered from a steep plunge on Tuesday after the company said that it was still working to close its planned merger with Sony Group Corp.’s India unit, Bloomberg News reported. The stock, which had lost as much as 13.6% while trading in Mumbai — the lowest level since Feb. 23, recouped bulk of the losses after the company’s exchange filing. It was trading 6.5% lower at 259.95 rupees at 1:58 pm in Mumbai, data compiled by Bloomberg show. The benchmark S&P BSE Sensex was up.

The National Company Law Tribunal (NCLT) has admitted Canara Bank's application to initiate the corporate insolvency resolution process (CIRP) against Mumbai-based real estate developer Shah Group Builders, the Economic Times of India reported. The bank had moved the bankruptcy court against the developer in 2020 following its default on loans worth nearly ₹100 crore including interest thereon. The account was declared a non-performing (NPA) in December 2016.

India’s economy is booming. Stock prices are through the roof, among the best performing in the world. The government’s investment in airports, bridges and roads, and clean-energy infrastructure is visible almost everywhere. India’s total output, or gross domestic product, is expected to increase 6 percent this year — faster than the United States or China. But there’s a hitch: Investment by Indian companies is not keeping pace, the New York Times reported. The money that companies put into the future of their businesses, for things like new machines and factories, is stagnant.

Legal experts say that while the government, courts and the Insolvency and Bankruptcy Board of India (IBBI) have been advancing the cause of Insolvency and Bankruptcy Code (IBC), 2016, they need to introduce stringent guidelines and provide better infrastructure in 2024 to ensure cases are disposed on time, MoneyControl.com reported.

As Go First remains grounded, billionaire Nusli Wadia has blamed faulty engines by P&W for the loss of ₹10,000 incurred by the company, the Hindustan Times reported. The hope for flight operations continues to look bleak for Go First, as all the planes of the airlines are grounded. Amid bankruptcy calls, the Wadia Group chairman has pointed a finger at aerospace company Pratt & Whitney for the fate of Go First.

Axis Bank, one of India’s leading private sector banking entities, has moved the National Company Law Tribunal (NCLT) seeking to initiate insolvency proceedings against Zee Learn, a prominent provider of education services in the country, BNNBreak.com reported. The bank has filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, aiming to commence the Corporate Insolvency Resolution Process (CIRP) for Zee Learn.

A week after India barred lenders from investing in alternative investment funds that hold stakes in their borrowers, the market is counting the cost, Bloomberg News reported. The Reserve Bank of India said the move is designed to prevent an unstable build up of assets in the country’s financial system. But, lawyers and analysts say alternative investment fund managers could see costs ramp up and the rules will make it harder to raise cash in the future. “This is a sledge hammer to the industry,” said Vinod Joseph, partner at Economic Laws Practice, a legal firm.

Stonepeak Partners entered into an agreement to invest in AA Ltd., the breakdown coverage firm said in a statement, Bloomberg News reported. The alternative investment firm will become a minority shareholder of AA, according to the statement Saturday. AA didn’t disclose the size of the investment. Sky News earlier reported Stonepeak was nearing a £450 million ($572 million) investment into AA, which is owned by private equity firms TowerBrook and Warburg Pincus.

India's finance ministry has asked managing directors of public sector banks to review monthly the top 20 insolvency cases, financial services secretary told reporters, Reuters reported. The government has asked for reviews of insolvency cases as there are delays in admission of cases in insolvency courts. "There are delays in admission stage,” Vivek Joshi, Vivek Joshi, said.