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.
According to court documents analyzed, Statkraft, the largest renewable energy company in Europe, is on track to become the first multinational corporation to acquire an Indian power company through the insolvency and bankruptcy code (IBC) process after the national company law tribunal (NCLT) approved its Rs 1.80 billion offer for Lanco Mandakini Hydro Energy, Construction World reported.
Only 15 percent of the 267 insolvency cases admitted in company law tribunals during October-December 2022 reached resolution with overall recovery of just 27 per cent of claimed amount, the IBBI data showed, the Economic Times of India reported. As much as 45 per cent cases were concluded through liquidation, according to a Kotak Securities analysis of the latest data from the Insolvency and Bankruptcy Board of India (IBBI).
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State Bank of India (SBI) has filed an insolvency petition against Kolkata-based engineering, procurement and construction (EPC) company Simplex Infrastructures in the National Company Law Tribunal (NCLT) for recovery of its dues after attempts to restructure its loans did not succeed, the Economic Times of India reported. The company owes lenders led by Punjab National Bank (PNB) a total of ₹9,600 crore and is one of the largest accounts to be taken to the bankruptcy courts in recent times. The NCLT is likely to hear the petition later this month.
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Adani Group said it had completed full prepayment of margin-linked share-backed financing worth $2.15 billion as part of its debt prepayment plan, before its deadline of March 31, Reuters reported. The Gautam Adani-owned conglomerate also prepaid a $500 million facility it had taken for Ambuja acquisition financing, it said in a statement on Sunday, adding that the payment comes in continuation of promoters' commitment to repay the leverage.
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Billionaire Gautam Adani and his family have prepaid all borrowings backed by Adani Group company shares, senior executives at the conglomerate told investors at a meeting in London on Wednesday, according to people who attended, Bloomberg reported. The London meeting was part of a worldwide roadshow aimed at reassuring international investors that the ports-to-power empire’s finances are under control, after as much as $153 billion in combined market value was erased from company stocks following a January short seller’s report.