In a move aimed at speeding up the liquidation process, the Insolvency and Bankruptcy Board of India amended its regulations to allow a corporate debtor’s asset that is “not readily realisable” to be transferred to a third party in consultation with stakeholders, The Economic Times reported. Creditors can also transfer debt due to them to a third party during the liquidation process to benefit creditors who may not be willing to wait for completion of the process.

It has almost been a year since troubled Dewan Housing Finance Corp. Ltd (DHFL) was thrust into insolvency proceedings—the first financial firm to be under the code, Mint reported. The committee of creditors has held 11 meetings so far and a 12th was on at the time of writing this piece. The latest meeting comes in the wake of a surprise bid for DHFL. An Adani Group company now wants to buy DHFL lock, stock and barrel for an amount higher than the highest bid of ₹31,000 crore made by Oaktree Capital so far, according to a Mint report.

Banks have been able to convince corporate borrowers to avoid applying for debt restructuring given that the “negative externalities" and aggregate debt recast are not expected to breach the ₹1-trillion mark, a State Bank of India report said on Wednesday, Mint reported. “In terms of numbers, assuming 15%-20% of the corporates had opted for moratorium, based on our earlier analysis, the restructuring amount originally envisaged was up to ₹7 trillion," Soumya Kanti Ghosh, group chief economic adviser, SBI said in the SBI Ecowrap report.

The insolvency law committee and a group of ministers are considering various amendments to the four-year-old Insolvency and Bankruptcy Code (IBC), some of which are likely to be introduced in the upcoming Winter Session of Parliament, a senior government official told Business Standard, Business Standard reported.

India is neglecting bank recapitalisation as it focuses on debt moratoriums and interest waivers for borrowers amid the COVID-19 pandemic, a former central bank official told Reuters on Monday, Reuters reported. Indian banks are saddled with over $120 billion in bad debt, and in severely stressed conditions the bad-loan ratio could nearly double by March, according to Reserve Bank of India projections. Restoring banks’ capital is critical for aiding a meaningful recovery, but there has been little focus on the matter, former RBI Deputy Governor Viral Acharya said.

India’s Jet Airways would be acquired by an investor consortium under a multi-million dollar resolution plan approved by the carrier’s creditors on Saturday, Reuters reported. The plan submitted by a consortium of London-based Kalrock Capital and UAE-based businessman Murari Lal Jalan comes after months of talks over the airline’s future and was confirmed in a regulatory filing, which gave no details of the deal. A source close to the situation said the new owners had agreed to pump in 10 billion rupees ($136 million) as working capital for the revival of the airline.

AirAsia Group Bhd. has stopped funding its Indian affiliate as the global travel slump leaves the Malaysian group struggling to support a sprawling empire of no-frills airlines, people familiar with the matter said, Bloomberg News reported. AirAsia India Ltd.’s future may now depend on Indian conglomerate Tata Group, its majority shareholder, which has provided emergency funding but has yet to commit to a full rescue, according to the people, who asked not to be named discussing a confidential matter. The airline isn’t at any immediate risk of folding, the people said.

India should look to make rapid strides towards introducing a comprehensive 'individual insolvency' regime now that it has achieved several milestones in corporate insolvency in recent years, according to IBBI Chairman M S Sahoo, The Hindu Business Line reported. Giving a sense of direction to the reform agenda on IBC in the days to come, Sahoo has in an article —written for a special publication to commemorate 4 years of existence of IBC —also said that there may be a need to amend IBC to introduce the concept of pre-packs in India.

India will subsidize interest costs for small borrowers who had availed of a six-month loan repayment holiday to survive as the pandemic devastated cash flows, according to court documents seen by Bloomberg. Prime Minister Narendra Modi’s government will pay the “interest on interest” on loans of as much as 20 million rupees ($273,000) for the duration of the Reserve Bank of India-authorized moratorium that ended on Aug. 31, according to an affidavit filed by the Ministry of Finance in the Supreme Court on Friday, Bloomberg News reported. A spokesman for the ministry declined to comment.

October 7. That is when the tenure of Rajnish Kumar as the Chairman of State Bank of India gets over. And that is why the date has come in play in the Jet Airways insolvency process even as lenders, sources say, meet on September 30 and start the voting process, Moneycontrol reported. The moot question is: Will the airline get a new owner before Kumar completes his tenure and his successor Dinesh Kumar Khara takes over?