Out-of-court settlements in cases of loan default are gaining traction among both creditors and debtors as parties are looking for ways to avoid initiation of Insolvency and Bankruptcy Code (IBC), the Economic Times of India reported. According to the Insolvency and Bankruptcy Board of India (IBBI), 23,417 applications for initiation of the Corporate Insolvency Resolution Process (CIRP), having underlying default of ₹7.31 lakh crore, were resolved even before their admission, as on September 31.
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India’s gross domestic product grew 6.3% from July to September as global pressures on prices and supply chains, along with economic downturns in the U.S. and European Union, slowed its economic recovery, the Wall Street Journal reported. In April to June, the economy grew 13.5% from a year earlier, benefiting from the easing of covid restrictions, and from a comparison to a quarter in which India’s economy was hit hard by a fierce wave of the illness.
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The bankruptcy court has allowed the State Bank of India's petition seeking to initiate insolvency proceedings against Kolkata-based steelmaker Reform Ferro Cast and appointed Arun Kumar Gupta as its interim resolution professional, the Economic Times of India reported. State-owned lender SBI had approached the Kolkata bench of the National Company Law Tribunal (NCLT) against the steelmaker after it defaulted on its dues of about ₹267 crore.
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Banks, financial institutions and other creditors of stressed companies have realised Rs 2.43 lakh crore through NCLT-supervised insolvency resolution processes against total claims of Rs 7.91 lakh crore till September 30, 2022, the Economic Times of India reported. So far 532 CIRPs (Corporate Insolvency Resolution Process) yielded resolution plans, said the quarterly report of the Insolvency and Bankruptcy Board of India (IBBI). "Till September 30, 2022, the creditors have realised Rs 2.43 lakh crore under the resolution plans.
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The National Company Law Tribunal (NCLT) has directed to initiate insolvency proceedings against realty firm Ansal Properties & Infrastructures on a petition filed by 126 flat buyers of one of the company's housing projects, the Economic Times of India reported. A two-member bench of the insolvency tribunal had admitted the plea moved by 126 flat/villa buyers of Ansal API's real estate project The Fernhill located at Sector 91, Gurgaon.
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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 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.