The National Company Law Tribunal has rejected applications of Jet Airways (India) Ltd.’s workers unions seeking a copy of the resolution plan submitted by a consortium led by Dubai-based entrepreneur Murari Lal Jalan and Kalrock Capital. A bench comprising Janab Mohammed Ajmal and V Nallasenapathy, who heard the case through video conferencing, observed that a resolution plan can only be presented to the creditors’ committee or the adjudicating authority for its approval.
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India
The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted insolvency proceedings against Topsgrup Services and Solutions, popularly known as Tops Security, the Economic Times reported. The bench has also appointed chartered accountant Rajendra Karanmal Bhuta as interim resolution professional (IRP) to oversee the company’s day-to-day affairs and revival plans.
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India’s Supreme Court stopped regulatory approval for the Future Group’s $3.4 billion asset sale to Reliance Industries Ltd., delaying the deal in a boost for Amazon.com Inc., which wants to scuttle the transaction in its bid to dominate the country’s retail sector, Bloomberg News reported. Agreeing with the American e-commerce giant’s petition, the top court on Monday overturned a lower court’s ruling and said the National Company Law Tribunal can continue hearing the case but must not give a final nod till further orders. The court also sought written statements from Future Retail Ltd.
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Traders in India are once again testing the central bank’s pledge to support the government’s massive borrowings, Bloomberg News reported. The tension is showing in the benchmark 10-year yield that surged past 6% on Thursday, a level seen as a line in the sand for the Reserve Bank of India. Underwriters had to buy almost 70% of government debt put up for auction as a near-record debt-sale plan and concerns over fewer liquidity measures spook traders.
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India is considering setting up a body comprising of independent experts that will take over the role of privatizing state-run companies once the government decides to divest, Bloomberg News reported. The panel will replace bureaucrats, who currently manage privatization, as well as minority stake sales, the people said asking not to be identified because the discussions are private. The proposal is at an early stage and a final decision hasn’t been taken, they said. An external panel will help accelerate the asset sale process and bypass red tape, according to the people.
McNally Sayaji Engineering Ltd is going to face bankruptcy, the first casualty of the financial turmoil at Williamson Magor Group, TelegraphIndia.com reported. The company is an unlisted subsidiary of McNally Bharat Engineering Ltd, which is at the heart of the woes in the group. The Calcutta bench of the National Company Law Tribunal admitted McNally Sayaji for the corporate insolvency resolution process (CIRP) at the behest of ICICI Bank. McNally Bharat managing director Srinivas Singh said the company was examining the order.
Three C Homes (3C) Private Limited, the Delhi NCR based real estate developer once sought after by multiple private equity investors, is headed for liquidation after the bankruptcy tribunal rejected a proposed resolution offer, which was less than 20% of the liquidation value, VCCircle.com reported. The bankruptcy proceedings have been underway at the New Delhi bench of the National Company Law Tribunal (NCLT) since September 2019, on a plea by Arun Kumar Sinha, one of the home buyers for the company’s Lotus City project in Greater Noida, Uttar Pradesh.
The Indian Supreme Court on Wednesday issued notice in an appeal against the NCLAT order which had held that entries in the balance sheet of the company do not constitute an acknowledgement of liability in terms of Section 18 of the Limitation Act, 1963, India Legal reported. This is for the purpose of filing an application for initiation of the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The bench comprising Justices R.F. Nariman, Hemant Gupta and B.R.
The Reserve Bank of India will seek to buy more than 3 trillion rupees ($41 billion) of sovereign bonds in the next fiscal year to support the government’s borrowing plans, Bloomberg News reported. That will exceed the 3 trillion rupees the RBI is expected to spend for the current year ending March. The intention is to cap the benchmark bond yield under 6%, while narrowing its spread with the repo rate to around 150 basis points. This is the first time there’s a clear signal on how much the RBI would spend on bond purchases, as recent market selloffs test its patience.
India’s central bank kept interest rates on hold Friday and began withdrawing some pandemic-era policies, while reiterating its intent to keep its stance accommodative to support economic growth, Bloomberg News reported. The Reserve Bank of India emphasized it was seeking to ensure ample liquidity to manage the government’s near-record borrowing and keep rates lower for longer. It also committed to opening up room for more targeted market operations to ensure financial stability, but bonds sold off as the measures fell short of expectations and lacked details.
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