India

Indian police have launched a preliminary investigation into the husband of ICICI Bank's chief executive, as well as officials at the lender and at Videocon Group, two sources said on Saturday, to assess whether there was any wrongdoing in lending practices, the International New York Times reported on a Reuters story.

A battle for control of one of India’s largest industrial assets is moving into the courtroom after bids for Essar Steel from both ArcelorMittal and a Russian-controlled investment vehicle were declared ineligible under India’s tough new bankruptcy code, the Financial Times reported. Essar Steel was forced into insolvency proceedings last August after falling behind on debt repayments.

India’s largest cement maker, UltraTech Cement Ltd., aims to aggressively cut its debt over the next two years to help prepare for more acquisitions, Bloomberg News reported. UltraTech, controlled by billionaire Kumar Mangalam Birla, plans to prepay some loans through its internal cash accruals, according to Chief Financial Officer Atul Daga. It targets to cut the ratio of its net debt to earnings before interest, taxes, depreciation and amortization to 1 time by 2020, from 2.3 times currently, Daga said in an interview Thursday in Mumbai.

Tata Steel has offered to pay a little more than 350 billion rupees ($5.4 billion) to lenders of Bhushan Steel & Power to take over the bankrupt steelmaker, a source with direct knowledge of the deal said. Bhushan Steel’s panel of creditors approved the deal on Thursday, pending other regulatory clearances, the company said in a stock exchange filing on Friday without disclosing financial details, Reuters reported.

India may allow more time for the restructuring plans of defaulting companies to be approved, according to people with knowledge of the matter, as a slew of lawsuits from owners, lenders and bidders slows the insolvency process and tests a new bankruptcy law, Bloomberg News reported. The rules mandate that a bad-loan resolution plan must be agreed upon within 270 days, failing which they require liquidation of the company’s assets.

UltraTech Cement Ltd. has signed an “in-principle” pact with Binani Industries Ltd. to buy its holdings of a distressed unit as India’s largest cement maker attempts to beat out a Bain-backed consortium, which earlier made the winning bid in ongoing bankruptcy proceedings, Bloomberg News reported. UltraTech, controlled by billionaire Kumar Mangalam Birla, said it had agreed to pay 72.7 billion rupees ($1.1 billion) for a 98.43 percent stake in Binani Cement Ltd. “subject to termination of” the insolvency proceedings that are underway, according to an exchange filing. The Dalmia Bharat Ltd.

State Bank of India will take a decision on a one-time settlement application filed by Uttam Galva Steels at a 50 per cent haircut by March-end, if accepted, will prompt other companies, being referred to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC), to apply for a similar relief, Business Standard reported. Uttam Galva Steels had defaulted on its Rs 60 billion of debt and the firm has made an offer last week to its lenders. “This is likely to be accepted as the banks do not want to delay settlements due to rising litigation,” a source said.

From London to St. Kitts, India’s struggling to extradite businessmen it claims have fled the country after defaulting on billions of dollars of bank loans, Bloomberg News reported. Now it hopes to stop others from leaving. The government has compiled a list of 91 people it is considering barring from leaving India because of their involvement with companies that have defaulted, said a person with knowledge of the matter.

A consortium led by VTB Group, Russia’s second-largest bank, said it is willing to buy out a local partner to ensure its offer for an indebted Indian steel mill meets government rules, setting up a contest with billionaire Lakshmi Mittal, Bloomberg News reported. Other investors in the group are willing to buy out Rewant Ruia’s stake in investment vehicle Numetal Ltd., Antoine Chemali, senior advisor for Mauritius-based Numetal, said in an interview in Mumbai on Thursday. That’s likely required because Ruia’s father is the founder of Essar Steel India Ltd.

India's Reliance Communications Ltd (RCom) will appeal a court order that stays the sale of some telecom assets of one of its units, the company said in a statement on Monday, the International New York Times reported on a Reuters story. The National Company Law Tribunal, India's designated court for bankruptcy cases, on Monday stayed the sale of assets of Reliance Infratel Ltd in response to a petition filed by HSBC Daisy Investments (Mauritius) Ltd, local media reported.