Piramal Capital has withdrawn the insolvency proceedings against Reliance Power Ltd., The Statesman reported. Reliance Power, in a stock exchange disclosure, has informed that Piramal Capital and Housing Finance has withdrawn the application made against Reliance Power Ltd. under section 7 of the Insolvency and Bankruptcy Code 2016. This follows an out-of-court settlement between both the company’s Rs 526 crores loan default by Reliance Power and its subsidiary, Reliance Natural Resources Ltd. (RNRL). RNRL had in 2010 merged with Reliance Power. RNRL had defaulted on a loan of?
India
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India has asked state-owned firms to consider moving the country's insolvency court to shut loss-making units, hoping for speedier resolutions as the government looks to slim down its public sector holdings, Reuters reported. Public sector companies will have to file an insolvency application under the Insolvency and Bankruptcy Code (IBC) for the resolution of a loss-making unit within three months of approval from a committee comprising top cabinet ministers, according to guidelines released by the government on Monday.
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The investigations into Florian Fritsch, one of the two executives seeking to get bankrupt Jet Airways India Ltd. back in the air through a bankruptcy process, will not affect the rescue plan for the airline, according to his firm, Bloomberg News reported. “These investigations have no impact on the acquisition of Jet Airways,” Kalrock Capital Partners, Fritsch’s investment company said in a statement. Neither Kalrock nor Jet Airways have connections with ongoing investigations or the charges, it said.
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Companies led by Asia's richest man, Gautam Adani, and billionaire Mukesh Ambani, the owner of Reliance Industries have entered the fray to acquire India's debt-laden Future Retail Ltd., Reuters reported. April Moon Retail Private Ltd, a joint venture between Adani Airport holdings and Flemingo group, Reliance Retail ventures as well as 13 other firms have submitted expressions of interest (EOIs) for Future Retail. Future Retail's court-appointed resolution professional (RP), Reliance Industries and Adani group did not immediately respond to emails seeking comment.
Vodafone Idea (Vi), the third-largest telecom company in India, is in a tough spot financially: The company is trying to pay off the financial institutions first before doing anything else, as it is trying to avoid bankruptcy, TelecomTalk reported. The telco had recently paid Rs 2700 crore to the State Bank of India (SBI) before even the due date of the said payment. Because of the financial woes, Vi might find it difficult to expand network services, introduce new products in the market and also at the same time be able to pay back the financial creditors.
All India Congress Committee (AICC) general secretary and Rajya Sabha member Randeep Singh Surjewala on Wednesday said that today Himachal was in a miserable condition and on the verge of bankruptcy because of the Jai Ram Thakur-led BJP government, the Hindustan Times reported. “No one had ever thought Himachal, where great people like Virbhadra Singh had ruled, there would be CM remote controlled by Delhi,” said Surjewala addressing an election rally at Dharamshala.
The Reliance Infratel (RTIL) bankruptcy resolution may be finally headed for a close after two years, the Economic Times of India reported. A Reliance Jio Infocomm arm has recently moved a fresh application in the National Company Law Tribunal (NCLT) Mumbai, offering to deposit the total resolution sum of Rs 3,500 crore in a State Bank of India (SBI) escrow account to acquire RTIL, which houses the tower and fibre assets of bankrupt telco, Reliance Communications (RCom).
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Payments and software company Ebix Inc. is seeking to raise cash to pay back some $600 million in debt due early next year, but time is running short as it awaits regulatory approval for a public offering in India while facing allegations of improper accounting from short sellers, WSJ Pro Bankruptcy reported. Nasdaq-listed Ebix, based in Johns Creek, Ga., today does the majority of its business in India.
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A bankruptcy court in Mumbai has admitted listed infrastructure firm Valecha Engineering under the Corporate Insolvency Resolution Process (CIRP) and has appointed Anurag Kumar Sinha as the interim resolution professional of the company, the Economic Times of India reported. The State Bank of India (SBI) had filed an application in the Mumbai bench of the National Company Law Tribunal (NCLT) after the company failed to repay its dues exceeding Rs 347 crore.
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The Reserve Bank of India's central bank-backed digital rupee was used to settle secondary market transactions in Indian government bonds worth 2.75 billion Indian rupees ($33.29 million) as part of a pilot, data on Tuesday showed, Reuters reported. Trades in a total of three securities –– five-year 7.38% 2027 former benchmark 6.54% 2032 and the current benchmark 7.26% 2032 bonds –– were settled under the new route, data as of 4 p.m. IST (1030 GMT) showed. "Since this was the first day, some deals only in liquid bonds were settled using CBDC," a trader with a state-run bank said.
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