India

India’s economy is booming. Stock prices are through the roof, among the best performing in the world. The government’s investment in airports, bridges and roads, and clean-energy infrastructure is visible almost everywhere. India’s total output, or gross domestic product, is expected to increase 6 percent this year — faster than the United States or China. But there’s a hitch: Investment by Indian companies is not keeping pace, the New York Times reported. The money that companies put into the future of their businesses, for things like new machines and factories, is stagnant.

Legal experts say that while the government, courts and the Insolvency and Bankruptcy Board of India (IBBI) have been advancing the cause of Insolvency and Bankruptcy Code (IBC), 2016, they need to introduce stringent guidelines and provide better infrastructure in 2024 to ensure cases are disposed on time, MoneyControl.com reported.

As Go First remains grounded, billionaire Nusli Wadia has blamed faulty engines by P&W for the loss of ₹10,000 incurred by the company, the Hindustan Times reported. The hope for flight operations continues to look bleak for Go First, as all the planes of the airlines are grounded. Amid bankruptcy calls, the Wadia Group chairman has pointed a finger at aerospace company Pratt & Whitney for the fate of Go First.

Axis Bank, one of India’s leading private sector banking entities, has moved the National Company Law Tribunal (NCLT) seeking to initiate insolvency proceedings against Zee Learn, a prominent provider of education services in the country, BNNBreak.com reported. The bank has filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, aiming to commence the Corporate Insolvency Resolution Process (CIRP) for Zee Learn.

A week after India barred lenders from investing in alternative investment funds that hold stakes in their borrowers, the market is counting the cost, Bloomberg News reported. The Reserve Bank of India said the move is designed to prevent an unstable build up of assets in the country’s financial system. But, lawyers and analysts say alternative investment fund managers could see costs ramp up and the rules will make it harder to raise cash in the future. “This is a sledge hammer to the industry,” said Vinod Joseph, partner at Economic Laws Practice, a legal firm.

Stonepeak Partners entered into an agreement to invest in AA Ltd., the breakdown coverage firm said in a statement, Bloomberg News reported. The alternative investment firm will become a minority shareholder of AA, according to the statement Saturday. AA didn’t disclose the size of the investment. Sky News earlier reported Stonepeak was nearing a £450 million ($572 million) investment into AA, which is owned by private equity firms TowerBrook and Warburg Pincus.

India's finance ministry has asked managing directors of public sector banks to review monthly the top 20 insolvency cases, financial services secretary told reporters, Reuters reported. The government has asked for reviews of insolvency cases as there are delays in admission of cases in insolvency courts. "There are delays in admission stage,” Vivek Joshi, Vivek Joshi, said.

The bankruptcy court in Kolkata has approved the acquisition of Khaitan family-promoted listed engineering firm McNally Bharat Engineering Co by BTL EPC Ltd, the Economic Times of India reported. McNally Bharat had admitted liabilities of Rs5,015 crore. The lenders have approved the Kolkata-based EPC firm’s over Rs 441-croreresolution plan with 90.06% votes in favour. Originally, the Kolkata bench of the National Company Law Tribunal had admitted the company under the corporate insolvency resolution process (CIRP) in 2020 following an application filed by its lender, Bank of India.

Another Indian airline backed by a billionaire is on the brink of shutting down for good, having tried and so far failed to attract a savior after entering bankruptcy protection in May, Bloomberg News reported. Go Airlines India Ltd.’s chances are fading. Chief Executive Officer Kaushik Khona quit at the end of November, saying he couldn’t get the carrier flying again and that staff hadn’t been paid for six months. Go flight attendants and pilots are looking for jobs elsewhere. On Friday, Go announced in a post on X, formerly Twitter, that it had canceled all scheduled flights until Feb.

Insolvency tribunal NCLT Mumbai has approved the sale of some of the real estate assets of telecom company Reliance Communications, a regulatory filing said on Wednesday. The filing attached an order of the National Company Law Tribunal's Mumbai bench in the matter of application filed by the resolution professional of Reliance Communications, seeking approval from the NCLT for undertaking the sale of certain unencumbered assets of the company.