Lenders to India's Go First are not in favor of releasing additional funding to the grounded airline, given its legal troubles with lessors and complexities related to changes in the bankruptcy law, two banking sources told Reuters on Monday, Reuters reported. Go First's lenders, which include the Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank, had in principle approved funding of 4.50 billion rupees ($54.09 million) in June to resume operations and restart the airline.
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The National Company Law Tribunal (NCLT) has admitted Siti Broadband Services, a subsidiary of Essel Group-owned cable TV and broadband company Siti Networks, into the corporate insolvency resolution process following a plea by lender Aditya Birla Finance, msn.com reported. The NCLT has appointed Harvinder Singh as an interim resolution professional (IRP) for the company. Aditya Birla Finance moved NCLT following a default in payment of ₹4.38 crore by Siti Broadband.
India's biggest airline, IndiGo, said on Friday it would lease new planes and extend agreements on some older ones to offset the disruption from new problems with Pratt & Whitney engines, Reuters reported. Pratt & Whitney parent RTX said in July a rare powder metal defect could lead to the cracking of some engine components in the twin-engined Airbus A320neo, and called for accelerated inspections.
Changes to Indian laws to exclude leased aircraft from assets that can be frozen during bankruptcy proceedings of an airline "would have to be considered" retrospectively, the country's aviation regulator said in a court filing on Wednesday, Reuters reported. The clarification of India's recent amendment to its insolvency law potentially paves the way for lessors of bankrupt budget carrier Go First to take back their planes. Go First filed for bankruptcy in May but its lessors were blocked from repossessing planes due to a moratorium imposed by Indian courts.
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The National Company Law Tribunal (NCLT) has allowed the withdrawal of the insolvency plea against Bajaj Hindusthan by the State Bank of India, as the outstanding amount has been paid by the sugar manufacturer, Zee Business reported. SBI had moved an application before the Allahabad bench of the NCLT informing that the outstanding amount has been paid by the Corporate Debtor.
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Dabur India said on Wednesday its subsidiaries were among companies sued in the U.S. and Canada by customers alleging that the use of hair relaxer products had caused ovarian cancer, uterine cancer and other health issues, Reuters reported. "Currently, the cases are in the pleadings and early discovery phases of litigation," it said in an exchange filing, adding the allegations are based on "unsubstantiated and incomplete" study.
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Grounded Indian airline Go First has received an expression of interest (EoI) from Jindal Power Ltd, two banking sources and two people aware of the development told Reuters. An EoI is the first step in the bidding process and may not result in a financial bid. "Jindal Power was the sole successful applicant whose expression of interest was accepted by banks," said a banker with a state-run bank that has exposure to Go First.
India has amended its insolvency law to exclude leased aircraft from assets that can be frozen, a long-awaited move expected to shore up the financing of its fast-growing airline industry by addressing discrepancies between global and local rules, Reuters reported. The rule change, disclosed in a government notice on Wednesday, aims to bring India's bankruptcy laws into line with a treaty protecting the rights of foreign lessors, following a dispute over the bankruptcy of budget airline Go First.
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The lenders of Future Retail Ltd have rejected the bid submitted by Space Mantra for the debt-ridden firm, which is currently going through Corporate Insolvency Resolution Process (CIRP), the Economic Times of India reported. The Resolution Plan submitted by Space Mantra for Future Retail Ltd (FRL), failed to get the required number of votes in the e-voting process of the Committee of creditors (CoC). It was put "for the consideration of the CoC on July 19, 2023...
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Ebix Inc. Chief Executive Officer Robin Raina received a $1.8 million bonus last week, even as a Sept. 30 deadline looms for the company to repay a loan of more than $600 million to a syndicate of US banks without having the cash on hand, Bloomberg News reported. Ebix, based in Johns Creek, Ga., disclosed the bonus in a regulatory filing Monday. It said that $1.2 million of the bonus was paid on Sept. 19, the day the board awarded it to Raina. The remainder will be paid in October, according to the filing.
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