The National Company Law Tribunal (NCLT), Chennai has approved the resolution plan submitted by Haldia Petrochemicals for Nagarjuna Oil Corporation Ltd. (NOCL), The Hindu reported. V. Mahesh, liquidator for NOCL, confirmed the development, but the final order copy is awaited. NOCL's refinery project in Cuddalore was supposed to go on stream in 2012, but faced numerous delays, including in the form of a cyclone in 2011. Time and cost overruns resulted in the project cost escalating to ₹15,000 crore from ₹3,500 crore.
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Anil Agarwal, the billionaire founder of the Vedanta commodities empire, is offering a higher price to repurchase shares of his cash-rich Indian unit that’s key to his debt-repayment plans, Bloomberg News reported. London-based Vedanta Resources Ltd. will now seek to buy 17.51% of Mumbai-listed Vedanta Ltd. at 235 rupees ($3.24) a share, it said in an exchange filing Tuesday. That’s up from the previous 10% at 160 rupees apiece.
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The dedicated bankruptcy court has admitted the Corporate Insolvency Resolution Process (CIRP) against BSE-listed Manpasand Beverages Ltd, the Economic Times of India reported. The Ahmedabad bench of the National Company Law Tribunal (NCLT) has appointed Arpan Maheshkumar Shah as Interim Resolution Professional for the company.
India will propose a law banning cryptocurrencies, fining anyone trading in the country or even holding such digital assets, a senior government official told Reuters in a potential blow to millions of investors piling into the red-hot asset class. The bill, one of the world’s strictest policies against cryptocurrencies, would criminalise possession, issuance, mining, trading and transferring crypto-assets, said the official, who has direct knowledge of the plan.
India’s markets regulator unveiled new rules late Wednesday that will limit investments by mutual funds in some debt instruments, after investors suffered losses from writedowns on riskier bonds last year, Bloomberg News reported. The regulations, which take effect April 1, relate to debt such as some securities sold by banks which have features that allow losses to be imposed on creditors before equity holders, according to a circular from the Securities & Exchange Board of India.
Ares SSG, a leading Asia-Pacific alternative asset manager, announced today that certain of its funds have completed the acquisition of all underlying assets of Altico Capital India Limited, an NBFC which used to provide loans and financing to India's real estate sector before experiencing financial difficulties in 2019, according to a press release. The acquisition marks the first resolution of a defaulting NBFC outside India's Insolvency and Bankruptcy Code (IBC) and represents Ares SSG's single largest investment in India to date.
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India’s combined federal and states’ budget gap in the current fiscal year will reach 12.7% on increased healthcare spending and a collapse in revenues amid the pandemic, according to an analysis by the country’s largest commercial bank, Bloomberg News reported. State Bank of India said in a report published Wednesday that there was a sharp increase in debt in the year to March 31 as states had to borrow more given their lack of resources, with the average fiscal deficit across 13 states reaching 4.5% of gross domestic product.
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Bankruptcy courts have sent more than 1,100 companies for liquidation under the Insolvency and Bankruptcy Code (IBC) ever since the code came into force in 2017, Telangana Today reported. Citing data from the Insolvency and Bankruptcy Board of India (IBBI), the Minister of State for Corporate Affairs, Anurag Thakur told the Lok Sabha that a total of 1,126 companies have been ordered for liquidation as of December 31, 2020.
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The Supreme Court on Monday held that the NCLT has jurisdiction to adjudicate disputes, which arises solely or relates to the insolvency of a corporate debtor. The top court, however, cautioned the National Company Law Tribunal (NCLT) and its appellate tribunal (NCLAT) to ensure that they do not usurp the legitimate jurisdiction of other courts, tribunals and forum, when the dispute is not related to the insolvency of the Corporate Debtor, the Economic Times of India reported.
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Bankers are worried that there will be a flood of applications at the National Company Law Tribunal (NCLT) after the government suspension of insolvency proceedings ends on March 25 of this year. Some resolution cases like Future Retail could get derailed if operational creditors initiate insolvency proceedings. A section of bankers feels that the government can use the leeway under the amendment and extend the suspension up to June 2021. As part of its Cover relief measures, the government had issued on June 25 a notification to suspend insolvency proceedings by six months.
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