India

The Mumbai bench of the National Company Law Tribunal has admitted listed infrastructure development company SKIL Infrastructure Ltd under the corporate insolvency resolution process (CIRP) following an application filed by its financial creditor, Amluckie Investment Company Ltd., the Economic Times of India reported. The tribunal has also appointed Purusottam Behera as its resolution professional.

Jaicorp’s vice chairman Virendra Jain and his son Ankit Jain have emerged the highest bidders for Chennai-based steel maker Kamachi Industries, a sick unit being liquidated after a failed insolvency resolution process, the Economic Times of India reported. The father-son duo offered to acquire the company as a going concern. Their bid of Rs. 487 crore has been made under a National Company Law Tribunal (NCLT)-monitored process initiated by State Bank of India in February 2020. Kamachi Industries defaulted on Rs 2,200 crore of loans granted by a consortium of five public sector banks.

In an attempt to bring harmony and reduce delays, the Insolvency and Bankruptcy Board of India (IBBI) has now allowed the appointment of the same insolvency professional (IP) in the resolution or liquidation process of the corporate debtor (CD) and its personal guarantor (PG), the Financial Express reported. “Removal of this restriction will allow the appointment of the same IP in both the corporate process as well as the insolvency and bankruptcy proceeding of the PGs to the CDs for better harmonisation and effective coordination of both the processes,” the IBBI said on Saturday.

Vadraj Cement, which was stuck in liquidation for more than five years under the Bombay High Court, has been shifted to the National Company Law Tribunal (NCLT) for debt resolution, giving lenders a glimmer of hope to recover more than half of their dues, the Economic Times or India reported. Last Friday, NCLT pronounced an order to admit Vadraj Cement, formerly known as ABG Cement, for corporate insolvency process. Adani Group, UltraTech Cement and JSW Cement may bid to acquire the debt-laden company, lenders said.

A U.S. unit of Indian education technology startup Byju's has filed for Chapter 11 bankruptcy proceedings in the U.S. court of Delaware, listing liabilities in the range of $1 billion to $10 billion, Reuters reported. Byju's Alpha unit listed its assets in the range of $500 million to $1 billion, according to a court filing, which showed estimated creditors in the range of 100 to 199. The ed-tech company, founded by Byju Raveendran, was one of India's hottest startups, valued at $22 billion in 2022, but has more recently seen lenders initiating bankruptcy proceedings against it.

India's fast-growing airline industry faces higher leasing bills unless the country clarifies its insolvency laws, the head of major leasing firm Aviation Capital Group (ACG) said on Wednesday, Reuters reported. Foreign lessors, including an Irish subsidiary of U.S.-based ACG, were blocked from recovering jets caught up in the bankruptcy of budget carrier Go First last year and many are still embroiled in a legal battle to recover their assets.

Former Indiabulls promoter Rajiv Rattan has lost control of Sinnar Thermal Power after the bankruptcy appellate court vacated a stay to initiate corporate insolvency against the company, the Economic Times of India reported. Sinnar Thermal Power (STPL) is a subsidiary of the listed company RattanIndia Power, one of the largest distressed power producers, which has a 1,350 MW power plant at Nashik in Maharashtra. The National Company Law Tribunal (NCLT) admitted the company for corporate insolvency on September 19, 2022.

In a relief to low-cost carrier SpiceJet, the National Company Law Tribunal (NCLT) on January 29 dismissed an insolvency petition filed against the company by aircraft lessor Wilmington Trust SP Services, The Hindu reported. A Delhi-based bench of NCLT comprising members Mahendra Khandelwal and Rahul Prasad Bhatnagar dismissed the petition of the aircraft lessor based in Dublin, Ireland. Wilmington moved the insolvency plea against SpiceJet in June 2023 over unpaid dues.

The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted city-based Four Care Hospital under the Corporate Insolvency Resolution Process (CIRP) in an application filed by Standard Chartered Bank, the Economic Times of India reported. The tribunal has also appointed Rajan Garg as its resolution professional. In this case, originally the company's promoter had availed a loan facility from Dewan Housing Finance (DHFL). Subsequently, that loan was acquired by Standard Chartered Bank.

Hemant Kanoria-promoted Sarga Hotels, which operates a five-star hotel under the Westin brand in Kolkata, will be acquired by Shri Ram Multicom under the Insolvency and Bankruptcy Code (IBC) process, the Economic Times of India reported. The Kolkata bench of the National Company Law Tribunal approved a Rs 301 crore resolution plan against Rs 816 crore admitted claims from creditors, employees, and trade creditors. Shri Ram Multicom has developed Fairfield Hotel, a budget category hotel and operates malls and hotels in Dhanbad, Jharkhand.