India

The National Company Law Tribunal (NCLT) has dismissed JM Financial Asset Reconstruction's application to intervene in an insolvency resolution application filed by Bank of Baroda against Arch Pharmalabs, the Economic Times of India reported. In its application, JM Financial ARC had sought the tribunal's intervention to include it as a necessary party since it has acquired 97% of Arch Pharmalabs' debt and has credit exposure of over ₹9,500 crore.

The administrator of debt-ridden Reliance Capital (RCap) has moved NCLT, seeking a 90-day extension beyond the deadline to implement the resolution plan submitted by the successful bidder, the Hinduja Group, the Economic Times of India reported. The deadline for the implementation of the approved resolution plan was May 27, 2024.

A director of Indian tech firm Think & Learn Pvt faces financial penalties for defying a US judge’s order to find out where the troubled company stashed $533 million that jilted lenders say should go to them, Bloomberg News reported. Riju Ravindran, the brother of company founder Byju Raveendran, not only failed to make a serious effort to find out what happened to the cash, but deceived the court, U.S. Bankruptcy Judge John Dorsey said during a hearing yesterday in Wilmington, Del. “I conclude Mr. Ravindran’s testimony is not truthful,” Dorsey said.

The haircuts taken by creditors in Indian bankruptcy resolutions have increased to 73 percent in FY24 from the 64 percent in FY23, a report said on Friday, the Economic Times of India reported. A total of 269 resolution plans were approved by the National Company Law Tribunals (NCLTs) in FY24, up from 189 in the year-ago period, the report by domestic rating agency Icra said. The new admissions declined to 987 in FY24 from the 1,263 in FY23, the agency said, attributing the same to a higher base in the previous fiscal because of the Covid-19 pandemic-related stress.

The Mumbai bench of the National Company Law Tribunal (NCLT) allows the withdrawal of the corporate insolvency resolution process (CIRP) against Syska LED Lights Pvt Ltd, the Economic Times of India reported. Earlier, the tribunal had admitted the company under the insolvency resolution process and had appointed Ravi Prakash Ganti as the interim resolution professional for the company. Syska LED Lights is part of the Pune-based SSK Group, an exclusive distributor of Samsung mobiles, accessories and tables for five states in Western India.

National Company Law Tribunal yesterday noted that it would take a call on the fate of engine lessors for beleaguered airline Go First after studying the Delhi High Court order, the Economic Times of India reported. The Delhi HC, last month, had allowed aircraft lessors to retake possession of its aircraft telling the civil aviation regulator Director General of Civil Aviation to de-register the 54 aircraft.

The National Company Law Tribunal (NCLT) has admitted an insolvency resolution application against Indira Container Terminal Pvt Ltd and has appointed Dinesh Kumar Aggarwal as interim resolution professional of the company, the Economic Times of India reported. Mumbai-based Indira Container Terminal (ICTPL) is a joint venture between listed infra firm AJR Infra And Tolling Ltd (erstwhile Gammon Infrastructure Projects Ltd) and Spanish port operation and logistic behemoth Noatum Ports Sociedad Limitada (formerly Dragados SPL).

Promoters of distressed engineering, procurement and construction (EPC) company Gayatri Projects (GPL) made a nearly ₹750 crore offer to creditors seeking to settle dues worth ₹9,115 crore after banks filed for the company's liquidation, the Economic Times of India reported. However, a successful outcome is far from easy as any settlement with promoters under Section 12A of Insolvency and Bankruptcy Code (IBC) needs approval from 90% of lenders.

Binance, the world's largest cryptocurrency exchange, has registered with India's Financial Intelligence Unit (FIU), a senior FIU official said on Friday, as the exchange seeks to resume operations in the country, Reuters reported. The exchange was barred from operating in India in December for non-compliance with local regulations as part of the financial watchdog's crackdown on offshore crypto exchanges that were operating in the country without registration.

Cerberus Capital Management LP plans to expand its private credit portfolio in India as local non-bank finance lenders shift their focus from corporate lending to consumer credit, Bloomberg News reported. There is a “significant opportunity set for private credit lenders, both local and international, to pick up a portion of this space,” Indranil Ghosh, managing director and head of pan-Asia special situations, said in an interview. India is fast emerging as a big market for private credit activity, as global firms deploy billions, lured by the fastest-growing major economy.