Indian car sales fell by nearly a quarter last month — marking one of the industry’s worst slumps in more than a decade — as a credit crunch squeezes consumption across the country, the Financial Times reported. Car sales of 139,628 for June were down 24 per cent on the same period last year, according to the Society of Indian Automobile Manufacturers, extending a run of three months of declines of 20 per cent or more. Sales fell 26 per cent in May. At the heart of the pain is a liquidity squeeze whose effect has started to show up in India’s industrial and economic data.

Freightco India Ltd. moved the National Company Law Tribunal to initiate insolvency proceedings against Jain Farm Fresh Foods Ltd.—a subsidiary of debt-laden Jain Irrigation Systems Ltd.—for not paying dues, BloombergQuint reported. Jain Farm Fresh, nearly 82 percent of which is owned by Ashok Jain and family-controlled Jain Irrigation, had reported a revenue worth Rs 1,632.94 crore as of March 2018 and suffered a loss of Rs 43.53 crore, according to disclosures made in the parent’s annual report.

In a related story, Moneycontrol reported that the discourse over cross border or international insolvency framework has significantly gained traction with the turmoil at Jet Airways. Any airline having international operations will naturally have assets and businesses in multiple jurisdictions. If it goes bankrupt, then questions pertaining to the relevant country will naturally arise.

The first meeting of the committee of creditors (CoC) regarding the insolvency proceedings of Jet Airways is likely to take place early next week, sources told FE. The National Company Law Tribunal (NCLT) had on June 20 passed an order to initiate insolvency proceedings against the grounded airline following a plea filed by State Bank of India, The Financial Express reported. The first fortnightly report by the court-appointed interim resolution professional (RP) was submitted to NCLT on July 5.

Shares in Punjab National Bank slid after the lender said it had reported a suspected 38 billion rupee ($554.63 million) fraud in Bhushan Power & Steel Ltd’s account, potentially delaying a sale of the firm’s assets and consequent repayments to creditors, Reuters reported. PNB is among nearly 34 financial creditors who have claimed a collective 473.03 billion rupees from Bhushan Power & Steel Ltd, which the Reserve Bank of India referred to a bankruptcy court in 2017.

India will inject another 700 billion rupees ($10.2 billion) into state banks, giving them a bigger cushion to absorb loan losses and bolster credit growth at a time when the country’s shadow banks are in retreat, Bloomberg News reported. The new infusion will “boost capital so that credit can be further improved,” Finance Minister Nirmala Sitharaman said on Friday, while presenting the federal budget for the year to March 2020. New measures will be introduced to improve governance at the state lenders, she added, without giving details.

The National Company Law Appellate Tribunal (NCLAT) has directed the Mumbai bench of the NCLT to pass an order over the insolvency plea against 15 Videocon group companies within next three weeks, Business Standard reported. The NCLAT said that taking into consideration the nature of the matter, the National Company Law Tribunal (NCLT) Mumbai should pass an order within three weeks over the insolvency plea filed by banks. The NCLAT order came over the plea filed by the lenders, led by SBI and the Resolution Professional of the company.

Sales of riskier rupee corporate bonds have all but dried up in recent months, in another negative for India’s slowing economy as companies struggle to raise cash, Bloomberg News reported. Issuance of notes graded A+ and lower plunged 84% last quarter from a year earlier to 22.6 billion rupees ($329 million), the least in five years, according to data compiled by Bloomberg. Borrowing costs have also jumped for issuers with lower debt scores, as a crisis in India’s shadow banking sector saps investor demand for riskier securities.

The IRP has given time till July 24 for the employees of Jet Airways to submit their claims…JetLite employees meanwhile are examining their legal options, the official added. JetLite employees have been left stranded in the insolvency proceedings of Jet Airways, the Financial Express reported. As a part of the process, the court-appointed interim resolution professional (IRP) has invited claims from employees of the grounded airline. However, claims of employees who were a part of JetLite, the low-cost arm of the airline, have been rejected, sources said.

Dewan Housing Finance Corp., an Indian mortgage lender that has delayed payment on some of its obligations, plans to ask banks to lend 15 billion rupees ($217 million) every month to help revive the company, a person with knowledge of the proposal said, Bloomberg News reported. The financier, which has about 800 billion rupees of obligations, will submit the resolution plan on July 10 to a consortium of seven lenders led by state-run Union Bank of India, the person said, asking not to be identified as the discussions are private.