India’s Dewan Housing Finance Corp Ltd (DHFL) filed its long-delayed audited results for the quarter ended March 31 late on Monday, and revealed that its auditors had raised several red flags around its numbers, raising fresh concerns about the future of the troubled lender, Reuters reported. DHFL, one of India’s biggest housing finance companies with almost 1 trillion rupees ($14.52 billion) in debt, has been hard hit by a liquidity crunch that has crippled several Indian non-banking finance companies (NBFCs) following last year’s collapse of infrastructure lender IL&FS.
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India’s top court temporarily put ArcelorMittal’s $6.1 billion purchase of Essar Steel India Ltd. on hold, after the mill’s lenders sought to annul a lower court ruling that split sale proceeds proportionately among all creditors, Bloomberg News reported. The Supreme Court on Monday admitted financial lenders’ appeal against a bankruptcy court ruling that put secured creditors like banks at par with operational creditors, or suppliers to the plants. It also said it would resolve issues arising from the Essar verdict expeditiously and fix an early date for hearing the case.
State-run Union Bank of India has tagged Suzlon Energy Ltd as a bad loan and more banks are expected to follow suit as the stressed wind turbine maker has struggled to repay its lenders, two people aware of the development said, Mint reported. In the quarter ended 30 June, Union Bank has updated the status of the account as non-performing in the central bank’s Central Repository of Information on Large Credits database, said one of the two people cited above.
McLeod Russel has rejigged its board and top management as it faces a financial crisis that could force the company into insolvency proceedings, Business Standard reported. The Williamson Magor Group (WMG) company has roped in two new independent directors and appointed a new chief financial officer, besides other changes. Rajeev Takru, a wholetime director who is due to retire by rotation, has said he doesn't want to be relected to the boad but wished to continue his engagement with the company in an advisory role.
India’s central bank is seeing “signs of fragility” in some of the 50 mortgage lenders and other shadow banks it is monitoring to prevent the spread of a crisis that followed the collapse of a non-bank lender last year, Bloomberg News reported. “It is our endeavor that there is no contagion,” central bank Governor Shaktikanta Das said in one of his first media interviews on Saturday. "We are constantly in touch with the large lenders.
Credit rating agencies for years assigned high ratings to India’s Infrastructure Leasing & Financial Services (IL&FS) and its group companies despite its deteriorating finances, according to a special audit, Reuters reported. Audit firm Grant Thornton was appointed by IL&FS’ new board to conduct the review following the government’s decision to take charge of the group after its defaults on debt obligations sparked fears of financial contagion.
Lenders to Jet Airways agreed on Friday to provide some interim financing to the bankrupt airline to help it cover legal and other costs, as resolution experts look to find a potential buyer, Reuters reported. In a regulatory filing, bankruptcy resolution firm Grant Thornton said Jet’s lenders had also approved the eligibility criteria for potential buyers. The filing did not say how much interim funding had been approved, but a source familiar with the matter told Reuters the lenders had agreed to provide $10 million.
Care Ratings Ltd. has put its chief on leave pending a probe into an anonymous complaint received by the nation’s markets regulator, adding to the troubles for India’s credit assessment industry, Bloomberg News reported. Care’s board placed Chief Executive Officer Rajesh Mokashi on leave, the company said in an exchange filing Wednesday evening. Earlier this month, the local unit of Moody’s Investors Service sent its managing director on leave amid an inquiry into a controversial rating decision.
Cyril Amarchand Mangaldas is the largest law firm in India, and is well equipped to manage the Jet Airways project, given some of its recent assignment. In 2017, the law firm was called upon to help with the divestment of Indian public sector airline carrier Air India, alongside EY and Rothschild, Consultancy.in reported. The firm will now help the State Bank of India (SBI) with resolving the situation at Jet Airways, after the creditor made the decision to begin the insolvency process for the airline.
The National Company Law Appellate Tribunal (NCLAT) Wednesday directed IDBI Bank, the lead lender of debt-ridden Jaypee Infratech, to file an affidavit listing out new terms and conditions if a fresh round of bidding is conducted, Business Standard reported. A two-member bench headed by Chairman Justice S J Mukhopadhaya has asked IDBI Bank to file an affidavit by Friday in this regard. The appellate tribunal has listed the matter for next hearing on Monday. "Counsel appearing for lenders is allowed to file new terms and conditions in case fresh bidding takes place," the bench said.