JSW Energy on Thursday said it has entered into a pact with Jaiprakash Power Ventures Ltd (JPVL) to restructure outstanding debt of Rs 751.77 crore owed to the company, Business Standard reported. Under the pact, an amount of Rs 351.77 crore will be converted into equity shares of JPVL with a face value of Rs 10 each and Rs 280 crore will be written off, JSW Energy said in a BSE filing.

Shares of rating companies that missed signs of a default that triggered India’s mini-Lehman moment are soaring after the nation’s markets regulator imposed only a small penalty, Bloomberg News reported. Care Ratings Ltd. posted record gains and Icra Ltd. saw its biggest four-day advance in more than a year after the Securities and Exchange Board of India on Dec. 26 fined them 2.5 million rupees ($35,000) each on charges they overlooked facts while assessing Infrastructure Leasing & Financial Services Ltd. The probes didn’t find any malafide intent.

Financial creditors to Dewan Housing Finance Corporation Ltd. have submitted claims worth Rs 86,892 crore against the mortgage lender taken to insolvency courts by the central bank, Bloomberg Quint reported. R Subramaniah Kumar, the administrator appointed by the Reserve Bank of India, has so far admitted claims worth nearly Rs 80,980 crore before the insolvency proceedings begin, according to information available on the DHFL website. Mutual funds and other bondholders have claimed Rs 45,550 crore. The administrator admitted most of these claims.

For many Indian tycoons, 2019 turned woeful as lenders -- empowered by the nation’s recent bankruptcy law and desperate to clean up soured debt from their books -- started seizing assets of delinquent firms or dragged them into insolvency, Bloomberg Quint reported. Indian banks wrote off a record $39 billion of loans in the 18 months through September in a bid to repair their balance sheets as they battled the world’s worst bad debt pile.

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.

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.

India’s market regulator on Thursday fined two leading credit rating agencies 2.5-million-rupees ($35,058.20) each for their failure to carry out proper due diligence when assigning credit ratings to an indebted shadow bank, Reuters reported.

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.