India

India's bankruptcy court has admitted McLeod Russel India, the world's largest tea producer, under the Corporate Insolvency Resolution Process (CIRP), the Economic Times of India reported. The Kolkata bench of the National Company Law Tribunal (NCLT) has appointed Ritesh Prasad Adatiya as the interim resolution professional (IRP). This came on a plea by the IL&FS Infrastructure Debt Fund, after McLeod Russel defaulted on dues of over ₹347 crore in November 2019.

Shares of Vodafone Idea Ltd jumped nearly 25% on Monday after the Indian government allowed the carrier to convert the $2 billion interest on dues owed to the sovereign into equity, which could free up some cash flows in the near term, Reuters reported. India had in 2021 approved a bailout package for the debt-strapped telecom companies, allowing them to convert interest on deferred adjusted gross revenue owed to the government into equity.

The ports-to-energy conglomerate controlled by Indian billionaire Gautam Adani said its founders will prepay a $1.1 billion loan that was backed by shares of some of its companies, a move to shore up investor confidence after a rout in its stock prices over the past two weeks, the Wall Street Journal reported. The Adani Group said Monday that its so-called promoters—a term used to describe controlling shareholders—have posted amounts to pay off the loan ahead of its maturity in September 2024.

The National Company Law Tribunal, Chennai (NCLT) has approved the Resolution Plan of ASG Hospital for Vasan Health Care, the Times of India reported. This was the first case admitted in Chennai in April 2017 under the Insolvency and Bankruptcy Code. After a two year stay of the process by Madras High Court, the insolvency process was revived on October 3, 2019. The total resolution plan amount is Rs 526 crore. This includes Rs 400 crore for payment to all the stakeholders including creditors and Rs 126 crore towards working capital and capex infusion to revive the eye care hospital.

The flagship company of beleaguered Indian tycoon Gautam Adani pulled a record 200 billion-rupee ($2.4 billion) share sale after a selloff triggered by a US short seller’s report engulfed his group in turmoil, Bloomberg News reported. Adani Enterprises Ltd. decided not to go ahead with its follow-on public offer of shares, according to a statement late on Wednesday. India’s Mint newspaper reported earlier that Adani was considering withdrawing the share sale, even though it was fully subscribed with backing from prominent Indian and Gulf investors.

The government has proposed the decriminalisation of several violations under the Insolvency and Bankruptcy Code (IBC) to further improve the ease of doing business and speed up corporate failure resolution, the Economic Times of India reported. The move is in line with the government's initiative to clean up the statute book to decriminalise minor offences and switch to monetary penalties. A similar process has been carried out in the laws for companies and limited liability partnerships.

India’s bid to streamline bankruptcy proceedings includes provisions that could change the proportion of money creditors get from a firm’s liquidation, according to a Bloomberg News analysis. To speed up proceedings and counter a mounting caseload, the Ministry of Corporate Affairs last week published published dozens of proposed amendments to the insolvency code, giving the public until Feb. 7 to provide input. Any changes to the law would have to be voted on by parliament.

A bankruptcy court on Thursday admitted military-focussed software developer Rolta India for the corporate insolvency resolution process (CIRP), allowing a petition filed by state-owned Union Bank of India, the Economic Times of India reported. The Mumbai Bench of the National Company Law Tribunal (NCLT) appointed Mamta Binani as the interim resolution professional for the listed firm. Union Bank had approached the bankruptcy court in February 2020 after the Mumbai-based company defaulted on dues of over ₹1,413 crore to the lender.

The government proposal to amend the Insolvency and Bankruptcy Code (IBC), such that it permits mandatory admission of insolvency applications filed by financial creditors, is seen as a course correction after the Supreme Court's judgement on Vidarbha Industries Power, an Anil Ambani group company, the Economic Times of India reported.