India

Indian tycoon Vijay Mallya lost a U.K. lawsuit filed by Indian banks seeking to collect more than 1.15 billion pounds ($1.55 billion) amid allegations that he committed massive fraud. Judge Andrew Henshaw in London Tuesday said the lenders, including IDBI Bank Ltd., can enforce an Indian court ruling that relates to allegations that Mallya willfully defaulted on about $1.4 billion in debt for his now-defunct Kingfisher Airlines Ltd, Bloomberg News reported. Henshaw also refused to overturn a worldwide order freezing Mallya’s assets. The 62-year-old is fighting numerous lawsuits in the U.K.

The wait for investors to acquire some of the $210 billion of stressed assets up for grabs in India is likely to get longer. That’s because creditors are afraid to take decisions, Bloomberg News reported. Current and former top bankers from at least four state-run lenders are under investigation for alleged impropriety over their lending decisions, while the Central Bureau of Investigation has started a preliminary inquiry into an alleged nexus between Videocon Chairman Venugopal Dhoot and the spouse of ICICI Bank Ltd. CEO Chanda Kochhar after ICICI extended credit to the conglomerate.

Companies referred to bankruptcy courts may not be allowed to leave the process once bids have been invited or a resolution plan has been accepted, The Economic Times reported. The government is considering setting a time limit for withdrawing cases admitted for insolvency resolution, ending ambiguity on a key aspect of the procedure. A 14-member law committee on the Insolvency and Bankruptcy Code had recommended allowing retraction of applications if 90% of the creditors voted in favour of withdrawal. However, the panel had not specified a time limit for withdrawal of such cases.

India’s Lanco Infratech Ltd said on Thursday a panel of its creditors has not approved an insolvency resolution plan and that its administrator will file for potential liquidation of the company, Reuters reported. Lanco, among 12 of the biggest debt defaulters in India that were pushed to bankruptcy court last year, said in a stock exchange filing bit.ly/2jncWQC that a debt resolution proposal from Thriveni Earthmovers Pvt Ltd had failed to get the minimum 75 percent creditors' vote required for it to get the go ahead before the deadline expires on Friday.

Hindustan Construction Ltd. is headed for its lowest close since June 2016 after its unit Lavasa Corp Ltd. defaulted on repayment to bondholders, Bloomberg News reported. The stock declined 16 percent as of 11:51 a.m. in Mumbai, paring an earlier drop of as much as 24 percent, making it the biggest loser on the S&P BSE 500 Index. The shares have slumped 53 percent this year compared with a 2.9 percent gain for the benchmark Sensex Index.

The committee of creditors of bankrupt Essar Steel Ltd. today discussed eligibility issues with Numetal and ArcelorMittal for bidding for the 10-million steel mill at Hazira, people familiar with the development said. These companies were given time till May 1 by the lenders to give then in writing that they were fit to bid, Bloomberg Quint reported. “The CoC had given them time till Tuesday evening to submit in writing why they are eligible to bid. Today, both the companies gave presentation to the CoC on their eligibility,” said a banker.

Binani Cement Ltd.’s committee of creditors were today directed by the National Company Law Tribunal to consider a revised offer from UltraTech Cement Ltd, Bloomberg Quint reported. The Kolkata bench of the NCLT asked UltraTech to place a fresh bid before Binani Cement’s resolution professional in three days and extended the resolution process till June 24. The 270-day period for Binani Cement’s insolvency process would have ended in April, had the NCLT not provided this extension. The tribunal also allowed Dalmia Group to match UltraTech’s revised offer, if it so chooses.

The observations and conclusions in the Essar Steel Ltd. and Bhushan Power & Steel Ltd. insolvency cases are likely to impact the insolvency process considerably, Bloomberg Quint reported. The Delhi and Ahmedabad benches of the National Company Law Tribunal have pointed out lapses in the process carried out by the resolution professionals and the committee of creditors. On those grounds, the NCLT allowed Numetal and ArcelorMittal’s bid to be considered for Essar Steel and Liberty House’s bid for Bhushan Power.

The Insolvency and Bankruptcy Board of India (IBBI) has invited comments from public on the broad range of regulations it has already notified under the Insolvency and Bankruptcy Code (IBC), as it seeks to ‘crowdsource’ ideas to further strengthen the ecosystem. The comments from the stakeholders, received between April 30 and December 31, will be processed together and following the due process, regulations will be amended to the extent considered necessary, the IBBI said.

Lenders to Essar Steel Ltd. have decided to assess bids submitted by Numetal Mauritius and ArcelorMittal India on their individual merit, Bloomberg News reported. The committee of creditors will not challenge an order passed by the National Company Law Tribunal last week, directing them to review bids submitted by the two companies. The CoC decision was taken at the end of deliberations that spanned over two days as lenders assessed the tribunal’s order, three people in the know told BloombergQuint on the condition of anonymity.