Lenders led by Bank of India have appointed BDO India to conduct a forensic audit of Future Retail, which is facing insolvency proceedings, the Economic Times of India reported. Kishore Biyani-led Future Retail had attempted to stave off bankruptcy by selling its companies to Reliance Industries' retail unit. Creditors did not approve the deal and the company was admitted to the National Company Law Tribunal for insolvency proceedings after it defaulted on ₹3,495 crore debt.
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Private lenders IDFC First Bank and Yes Bank and state-owned Indian Bank have put their loans to SpiceJet Ltd in the high-risk category, the latest setback for the airline, Reuters reported. The lenders are concerned about SpiceJet's cash flows and have held discussions seeking assurances from the Indian budget carrier as it is behind on payments to some aircraft lessors, the sources said. The discussion comes as SpiceJet's approved fleet was halved for eight weeks this summer by regulators due to safety snags and as lessors have filed formal applications to de-register four planes.
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India’s trade deficit ballooned to a record high in July, as elevated commodity prices and a weak rupee inflated the country’s import bill, Bloomberg News reported. The gap between exports and imports widened to $31.02 billion in July, from $26.18 billion in June, B.V.R Subrahmanyam, India’s trade secretary, told reporters at a briefing in New Delhi Tuesday, citing preliminary data. The trade deficit in June was a record before the latest numbers were released. Imports jumped 43.59% in July from a year ago, while exports dropped 0.76%.
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The bankruptcy court on Thursday allowed a petition to withdraw the insolvency resolution process against Sahara Hospitality, after the company and its operational creditor agreed to settle their dispute, the Economic Times of India reported. Mumbai-based Sahara Hospitality, the owner of Hotel Sahara Star and part of Subrata Roy’s Sahara India Pariwar, was admitted under the corporate insolvency resolution process (CIRP) after operational creditor Delta Electro Mechanical filed a petition claiming a default of over Rs 50 crore by the company.
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An Indian court agreed to send Future Retail Ltd. into bankruptcy, allowing the creditors to find a new owner for the beleaguered retailer that once operated the largest chain of department stores across the country and was the prized trophy for two retail sector giants, Bloomberg reported. The National Company Law Tribunal on Wednesday gave its verdict on a petition by Bank of India to start the bankruptcy-resolution process for the cash-strapped retailer. It dismissed allegations from the local unit of Amazon.com Inc.
Public sector banks as well as their private sector peers have added a staggering amount of non-performing assets (NPSs) to their respective portfolios over the past year, according to data submitted by the Union Finance Ministry in Parliament on Monday, July 18, The Federal reported.
The Supreme Court has refused to interfere with the judgment of a Division Bench of the High Court of Tripura, where the High Court had held that a decree holder falls under the class of "other creditors" and so cannot be treated as a "financial creditor" under the Insolvency and Bankruptcy Code 2016, Mondaq reported.
The National Company Law Tribunal (NCLT), Chennai, has asked ASG Hospital for the sources of funds for its about ₹520-crore bid for Vasan Health Care Pvt. Ltd. under the corporate insolvency and resolution process, the Hindu reported. According to the legal proceedings, the committee of creditors had approved the Rajasthan-based ASG Hospital’s resolution plan with 97.9% voting in favour of the bid and sought the NCLT’s approval. At Friday’s hearing, the resolution professional told the NCLT that the bid was three times more than the liquidation value.
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Global energy markets that have thrown up plenty of anomalies in 2022 as flows get rerouted and prices jump just saw a fresh quirk: India, typically Asia’s leading gasoline and diesel exporter, has been forced to step up imports of the fuels, Bloomberg News reported. Gasoline imports are set to rise to about 37,000 barrels a day in the first half of July, an eight-month high, according to preliminary data by Vortexa Ltd. Diesel imports, meanwhile, are set to surge to the highest since February 2020 at about 69,000 barrels a day in the period. Refiners such as Indian Oil Corp.
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Edible oil firm Ruchi Soya Industries Ltd on Tuesday said the name of the company has been changed to Patanjali Foods Ltd with effect from June 24, the Economic Times of India reported. In 2019, Baba Ramdev-led Patanjali Ayurved acquired Ruchi Soya for Rs 4,350 crore through an insolvency process.
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