India

An Indian bankruptcy court ruled Jet Airways India Ltd. can resume operations under a new owner more than two years after it collapsed, according to Ashish Chhawchharia, the court-appointed professional running the carrier’s insolvency, Bloomberg News reported. Jet Airways, once India’s biggest private carrier, fell into bankruptcy in 2019 under mounting debts. Dubai-based businessman Murari Lal Jalan and Kalrock Capital Management Ltd.

Around 200 applications for resolution of stressed assets have been filed under the insolvency law since the suspension of fresh proceedings ended on March 24, according to the Insolvency and Bankruptcy Board of India (IBBI), the Economic Times of India reported. Amid the coronavirus pandemic that had significantly impacted economic activities, certain provisions under the Insolvency and Bankruptcy Code (IBC) were suspended with effect from March 25, 2020. The suspension was in place for one year till March 24, 2021.

The plastic raw material traders and product manufacturers of the city are passing through the worst phase of their lives with about 70% of them close to shutting shops and factories and facing bankruptcy, the Times of India reported. Huge rise in the rates of raw materials during the past one year and a fall in demand are to be blamed for the situation. This was revealed by the Plastic Manufacturers’ and Traders’ Association (PMTA), which claimed that rates of raw materials have gone up by four times in some cases and sales reduced to 25%.

India’s bankruptcy court has allowed billionaire Anil Agarwal’s Twin Star Technologies to takeover Videocon Industries Ltd., Bloomberg News reported. Videocon’s shares will be delisted as part of the plan submitted in December, the company told the stock exchange late Tuesday. Twin Star, a part of Agarwal’s Vedanta Group, will pay about 30 billion rupees ($410 million) to Videocon’s lenders, people familiar with the matter had said earlier. The company will put up 5 billion rupees within 90 days and the rest as non-convertible debentures over a period of time.

India’s bankruptcy court has allowed billionaire Anil Agarwal’s Twin Star Technologies to takeover Videocon Industries Ltd., Bloomberg News reported. Twin Star, a part of Agarwal’s Vedanta Group, will pay about 30 billion rupees ($410 million) to Videocon’s lenders. The company will put up 5 billion rupees within 90 days and the rest as non-convertible debentures over a period of time. Lenders had sought the bankruptcy court’s approval in December for the resolution plan submitted by Twin Star. The court approved the plan in a verdict on Tuesday.

An Indian court tasked industrial safety officials on Tuesday with visiting carmakers in the southern state of Tamil Nadu to draw up uniform safety guidelines for workers during a second devastating wave of COVID-19 infections amid the pandemic, Reuters reported. Workers at the Indian unit of Renault-Nissan had asked the Madras High Court for operations to be halted, saying social distancing norms were being flouted and the risk to their lives outweighed the health benefits provided by the company.

Defunct Jet Airways, which is undergoing insolvency resolution for nearly two years, cannot claim "historicity" for slots at airports, and allocation of slots will be based on existing guidelines, according to an affidavit, the Times of India reported. The civil aviation ministry and aviation regulator DGCA have also informed the National Company Law Tribunal (NCLT) that for claiming historicity, the criteria cannot be based on contention that airline was in operation for 25 years.

The Committee of Creditors (CoC) of Aircel has approached the Indian Supreme Court (SC) to overrule the order of the National Company Law Appellate Tribunal (NCLAT) that restrict them from selling the spectrum before the overall dues of the company are cleared. Because of the order, Aircel might have to move towards liquidation, which will hurt all of its lenders who are trying to recover their money from the company, Telecom Talk reported.

Indian real estate developers on Tuesday demanded protection from insolvency proceedings for at least a year as the sector had been severely hit financially due to the pandemic, the Hindustan Times reported. They also wrote to the Centre and the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) seeking more time to repay loans. “Section 7 of Indian Bankruptcy Code (IBC) allows a financial creditor to file for initiating the corporate insolvency resolution process against a corporate debtor.

The National Company Law Tribunal (NCLT), Hyderabad has dismissed a petition filed by a liquidator who was urging the tribunal to rope in the banks that lent huge monies to BS Limited company under liquidation as respondents to the case, the Times of India reported. The tribunal bench comprising Justices Madan B Gosavi and Binod Kumar Sinha passed this order after hearing the petition filed by the liquidator pertaining to BS Ltd.