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?

Bickering among Indian government ministries and a deferred top court decision on the sale of bankrupt telecom companies’ rights to use mobile phone spectrum has derailed the resolution of the industry’s biggest bankruptcies, leaving banks waiting for $5.7 billion in payments, Bloomberg News reported.

India’s corporate affairs ministry has extended suspension of new bankruptcy filings for three months from Friday, a statement from the ministry said, Bloomberg News reported. Bankruptcy filings, that have been in progress from earlier this year, have been halted to help financially-strapped borrowers hit by the pandemic, stay out of court. The move comes as the government seeks to cushion an economy already contracting at the worst pace in decades from more damage. The move has been challenged by banks, already saddled with one of the worst bad-debt ratios in the world.

The National Company Law Appellate Tribunal (NCLAT) has set aside the NCLT order rejecting the insolvency plea filed against Andhra Pradesh-based Coastal Oil Gas Infrastructure on the grounds of delay in filing, Business Standard reported. A three-member NCLAT bench has now directed the Hyderabad bench of the National Company Law Tribunal (NCLT) to admit the plea filed by the financial creditors -- Bank of India and Central Bank of India -- and decide it "expeditiously" within one month.

India’s corporate affairs ministry is proposing to extend a suspension of new bankruptcy filings that has been in place since earlier this year, people familiar with the matter said, Bloomberg News reported. The proposal is to extend the halt on new bankruptcy cases for another six months past its currently scheduled ending point this week. It must get final approval from Finance and Corporate Affairs Minister Nirmala Sitharaman, according to the people, who asked not to be identified because the details are private.

Small businesses in India, already struggling amid the pandemic, are now having to repay mounting debt after a loan holiday ended last month, Bloomberg News reported. The Reserve Bank of India gave borrowers a six-month freeze on their loan repayments, which ended on Aug. 31, with about a third of India’s $1.8 trillion outstanding loans being deferred under the program. Businesses still trying to cope with a collapse in demand must now figure out how to pay back their loans or face closure. That’s a dilemma Regi Philip is dealing with.

Appellate tribunal NCLAT has directed that a plea by JM Financial Asset Reconstruction Company to initiate insolvency proceedings against Samay Electronics be placed before a third member of the NCLT Ahmedabad bench after two other members of the same bench gave a split verdict in the matter, Outlook reported. The two-member Ahmedabad bench of the National Company Law Tribunal (NCLT) had delivered the split verdict on February 26, 2020.

The Parliament on Monday passed a bill that temporarily suspends initiation of corporate insolvency resolution process under the IBC, for a period not exceeding one year from March 25, to provide relief to companies affected by COVID-19 to recover from the financial stress, Big News Network.com reported. The Lok Sabha passed the Insolvency and Bankruptcy Code (Second Amendment) Bill 2020 after a reply by Finance and Corporate Affairs Minister Nirmala Sitharaman. The bill had earlier been passed by the Rajya Sabha and will replace an ordinance brought by the government.