India

Deutsche Bank has settled the loans it extended to Go Airlines out of court with its promoters Wadia Group, people aware of the development said. Go Airlines, which operated Go First Airlines, is undergoing voluntary liquidation, the Economic Times of India reported. Last week, Deutsche Bank conveyed to its resolution professional Shailendra Ajmera and lenders that it wants to relinquish itself as a member of the committee of creditors (CoC) since it has separately settled its debt with the promoter.

India’s capital markets watchdog has sought yet another 15 days to finish up the almost three-year-long investigation into Gautam Adani’s eponymous conglomerate, after the three-month extension already granted by the nation’s Supreme Court ended on Monday, Bloomberg News reported. The Securities and Exchange Board of India told the Supreme Court that it needs the additional time to wrap up work on seven out of the 24 matters it has been asked to investigate in the wake of the scathing attack by shortseller Hindenburg Research that accused the Adani Group of wide-ranging corporate malfeasance.

WeWork's warning of a bankruptcy risk would not have an impact on its India unit, regional CEO Karan Virwani said on Wednesday, Reuters reported. New York-based WeWork, which was valued at $47 billion in 2019, on Tuesday raised "substantial" doubt around the continuance of its operations and warned of a possible bankruptcy. WeWork India, which is backed and owned in majority by Indian real estate firm Embassy Group, said it was focused on growth with sustained profitability and the fundamentals of its business remain strong.

The Reserve Bank of India asked lenders to set aside more cash, stepping up measures to drain liquidity in the financial system, Bloomberg News reported. Bank stocks fell. The central bank ordered lenders to set aside 10% of their incremental deposits garnered between May 19 and July 28, Governor Shaktikanta Das said Thursday. The move will remove a little over one trillion rupees ($12 billion) from the banking system, he said after leaving interest rates unchanged.

Banks have written off bad loans worth Rs 14.56 lakh crore in the last nine financial years starting 2014-15, Parliament was informed on Monday, the Economic Times of India reported. Out of the total Rs 14,56,226 crore, written off loans of large industries and services stood at Rs 7,40,968 crore. Scheduled Commercial Banks (SCBs) have recovered an aggregate amount of Rs 2,04,668 crore in written-off loans, including corporate loans, since April, 2014 and up to March, 2023, Minister of State for Finance Bhagwat Karad said in a written reply to Lok Sabha.

The National Company Law Tribunal (NCLT) Mumbai recently had allowed an application filed by Edelweiss Asset Reconstruction Company Limited and initiated Corporate insolvency proceedings against well known art director Nitin Desai’s ND’s Art World Pvt Ltd over a debt of Rs 252 crore, the Economic Times of India reported. Edelweiss had filed the company petition last year to initiate Corporate Insolvency Resolution Process against the Corporate Debtor for unresolved financial debt of Rs 252 crore.

National Company Law Tribunal has appointed EY-backed Shailendra Ajmera as resolution professional (RP) of Coffee Day Global, according to an order uploaded on its website, the Economic Times of India reported. The bankruptcy court has admitted Coffee Day Global company for insolvency proceedings on the behest of IndusInd Bank, which filed a claim in court that the company had defaulted on term loans of Rs 115 crore that were disbursed to it in 2019. Ajmera is also the resolution professional of insolvent Wadia group airline, Go First.

A group of lenders to Byju’s will work with the Indian education-technology startup to change the terms of a $1.2 billion loan after the company fell into distress, Bloomberg News reported. A steering committee of creditors — who together own more than 85% of the term loan — and Byju’s have agreed to work toward a “signed and completed” amendment before Aug. 3, the lenders said in a statement Monday, confirming a Bloomberg News story.

Coffee Day Global, which operates the Cafe Coffee Day chain across India, was admitted for corporate insolvency by the Bengaluru bench of the bankruptcy court last week, said people aware of the development, the Economic Times of India reported. The National Company Law Tribunal (NCLT) passed an oral order on Thursday to admit the unlisted company based on a petition filed by IndusInd Bank. A detailed order is yet to be uploaded by the tribunal.