Indian carriers are likely to end this fiscal year through March with huge losses, hampered by their ability to raise fares even during the traditionally strong October-December quarter because of cut-throat competition, said three airline officials, requesting anonymity, Livemint reported. The collapse of Jet Airways (India) Ltd in April because of a severe cash crunch and a large debt pile has failed to lift industry fares as other airlines jumped to add capacity.
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Shares of Jet Airways (India) were locked in 5 per cent upper circuit for the seventh straight day at Rs 28.25 on the BSE on Thursday as the creditors of the shuttered airline decided to seek fresh initial bids for the airline, Business Standard reported. The stock is trading at its highest level since September 30, 2019. The Committee of Creditors (CoC) would seek fresh Expression of Interest (EoI), according to a regulatory filing on Monday.
Indian initial public offerings tumbled to a 4-year low by value in 2019 as the economy slowed, but some analysts are hoping for better in 2020 on the back of potential government reforms likely to boost stock markets, Reuters reported. Funds raised by Indian IPOs fell to just $2.8 billion this year, the lowest in four years, according to data from Refinitiv. In 2017, the proceeds hit a record $11.7 billion before falling to $5.5 billion in 2018. “2019 has been the worst year from an IPO market perspective,” said Sandip Khetan, a partner at consultancy EY.
Growing problems of corporate governance are emerging at India’s private banks and all lenders are at risk of rising default rates even though asset quality has improved overall, the Reserve Bank of India said on Tuesday, Reuters reported. In its annual report on Trends and Progress of Banking in India, the central bank highlighted the possibility of defaults rising in the retail lending space after the economy slowed to 4.5% in the July-September quarter, its weakest pace since 2013.
Lenders to an Indian shadow bank at the center of an industry crisis since it started defaulting three months ago have called for binding bids from potential rescuers by mid-January, people familiar with the matter said, Bloomberg News reported. Altico Capital India Ltd. is one of the latest caught up in the nation’s shadow banking crisis, which has deepened as lenders already reeling from one of the world’s worst bad loan piles balk at extending more credit.
One of the key issues in the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (code), is the status and resolution of disputed claims, Vantage Asia reported. This has now been set to rest by the Supreme Court in the recent Essar Steel case. The National Company Law Appellate Tribunal (NCLAT), in the Essar Steel case, had held that disputed claims can be decided by the appropriate forums after the expiry of the moratorium period.
Insolvency proceedings have been initiated against another company of crisis-hit 3C real estate group, The Times of India reported. In the wake of a plea by a buyer who has not received his plot, the National Company Law Tribunal (NCLT) appointed an insolvency resolution professional (IRP) to resolve the financial liabilities of Three C Homes Pvt Ltd, the 3C group subsidiary that is building Lotus City, a residential plot scheme in Sector 22A of Yamuna Expressway. The IRP has a maximum 270 days for the resolution, following which the project could be pushed into liquidation.
A tribunal has started insolvency proceedings in the case of Chennai-based wind turbine manufacturer ReGen Powertech, emphasising the dire times the wind energy sector is passing through, The Economic Times reported. The National Company Law Tribunal ordered the commencement of a corporate insolvency resolution process of ReGen Powertech on December 9, the interim resolution professional said in a notice dated December 13 in the Times of India. “This does not come as a surprise… They have not been able to ramp up their order book since 2017,” said an industry expert.
The insolvency resolution of Ruchi Soya under the Insolvency and Bankruptcy Code (IBC) is likely to be completed on December 16, a source told CNBC-TV18. The dues of lenders to Ruchi Soya are also expected to be settled on the same day, the sources added. The National Company Law Tribunal (NCLT), in July, cleared Patanajali Ayurveda’s takeover of Ruchi Soya under the IBC, and approved its resolution plan in September, moneycontrol.com reported. Patanjali secured funds from the State Bank of India, Union Bank, Punjab National Bank, Syndicate Bank and Allahabad Bank before.