Russia's VTB Capital-backed Numetal on Tuesday said Ruia family scion Rewant will never be in management of Essar Steel even though the rules do not bar blood relations of delinquent promoters from bidding for loan defaulter companies being auctioned to recover dues, Firstpost reported. During the proceedings of the National Company Law Appellate Tribunal (NCLAT), senior advocate Mihir Thakore representing Numetal said that the Insolvency & Bankruptcy Code (IBC) does not disqualify anyone based on blood relations. Aurora Enterprises Ltd (AEL) had a 25 percent shareholding in Numetal.

Lenders to the bankrupt Videocon Industries have filed an insolvency petition against 13 subsidiaries of the Venugopal Dhoot-led company to recover their dues, sources close to the development told FE. Most of these subsidiaries are likely to be admitted by the National Company Law Tribunal (NCLT) for insolvency proceeding by next month, Financial Express reported. The insolvency petition against Videocon Industries, which was filed by State Bank of India (SBI) in January, was admitted by the tribunal on June 6.

The Hyderabad Bench of the National Company Law Tribunal (NCLT) has given its nod for Corporate Insolvency Resolution Proceedings (CIRP) to be initiated against Ramky Infrastructure Ltd, Bar & Bench reported. The company is publicly listed and has a paid-up share capital of over Rs. 57 crores. Judicial Member Bikki Raveendra Babu passed orders after hearing a petition filed by one of Ramky’s operational creditors, Todi Minerals Pvt Ltd.

The role of insolvency resolution professionals (IRPs) and their ability to handle day-to day affairs of bankrupt companies has come under the spotlight with the NCLT questioning their decisions in a few recent high-profile insolvency cases, The Hindu reported. At last count, there were over 1,800 registered IRPs wading through a pile of over 9,000 cases. Stakeholders are demanding that the law should allow appointment of insolvency resolution entities rather than IRPs.

Tata Steel Ltd will be able to nearly double its capacity in India as a deal between its British entity and Germany's ThyssenKrupp will reduce the Indian parent's debt, the chairman of the company said on Monday. Tata Steel and ThyssenKrupp signed a deal on Saturday after months of negotiations to form Europe's second biggest steel company in which Tata and ThyssenKrupp will have a 50:50 partnership, the International New York Times reported on a Reuters story.

Hundreds of companies are headed for bankruptcy proceedings in India, and that’s a good thing. A new bankruptcy code sets a tight timetable for a defaulting company to deal with its debt: If it doesn’t come up with a solution in nine months, the company is liquidated, The Wall Street Journal reported. In May, Bhushan Steel Ltd. became the first of a group of large defaulters pushed into the bankruptcy court by the central bank to be resolved under the new rules. It was sold for $5.2 billion, and creditors recovered almost two-thirds of what they were owed.

Imagine India’s GDP growth had collapsed to 3 percent; inflation was about to hit double digits; exports were tanking; and the country’s twin deficits – in the government’s budget, and in the nation’s current account – were out of control. It’s only when the Reserve Bank of India tries to imagine such a dire scenario for March 2019 that its simulation exercise for bad loans throws up a figure of 17.3 percent of state-run banks’ total assets, a Bloomberg View reported.

Fugitive Indian businessman Vijay Mallya has sought court approvals to sell some frozen assets worth 139 billion rupees ($2 billion), making a fresh attempt to settle bank dues owed by his now-defunct Kingfisher Airlines Ltd, Bloomberg News reported. Mallya and his United Breweries Holdings Ltd. filed an application before a court in the southern Karnataka state on June 22, seeking permission to repay creditors from the proceeds of the sale, according to a statement on Tuesday.

Essar, which owes creditors $7.6 billion, is one of a dozen large debtors that were ordered into bankruptcy court after India’s central bank received additional powers to speed the process of winding down troubled companies, Bloomberg News reported. There are more than 2,500 bankruptcy cases wending their way through India’s notoriously slow legal system. Until the special courts were established by the 2016 Insolvency and Bankruptcy Code, bankruptcies could drag on for years.

South African units of Jindal Steel & Power Ltd. filed for a local form of bankruptcy protection known as business rescue this month, Bloomberg News reported. Jindal Mining SA, Jindal Africa Investments and Eastern Solid Fuels filed notice of the voluntary proceedings on June 12, according to documents posted on Jindal Africa’s website. A spokesman for the company didn’t immediately reply to an email seeking comment. Jindal Mining SA’s main business is coal production at the Kiepersol mine, according to one of the documents.