CREDITORS
Vedanta demerger moves ahead as NCLT clears way for meetings of shareholders, creditors
The Mumbai bench of the NCLT has directed Vedanta Ltd to convene a meeting of its creditors and shareholders within 90 days to discuss the proposed demerger. The demerger, already approved by 75% of secured creditors, aims to create independent entities for Vedanta's diverse businesses, simplifying its structure and attracting global investors.
Byju¡¯s founder accused of trying to regain firm with hidden cash
Byju Raveendran has been trying to regain control of his capsizing education technology empire, which is under court supervision in both India and the US, where some of its valuable units are located.
IBBI suggests monitoring panel to oversee resolution plan
India's Insolvency and Bankruptcy Board (IBBI) is proposing mandatory monitoring committees to oversee the execution of resolution plans under bankruptcy proceedings. These committees, appointed by creditors, would ensure compliance, manage asset transfers, and report progress to authorities, enhancing transparency and accountability in the resolution process.
IBBI proposes mandatory monitoring committees for resolution plans
The IBBI proposes monitoring committees to oversee resolution plans under IBC rules. These committees will ensure smooth implementation and increase confidence in the process. The committees will monitor asset transfer, compliance, and fund distribution. They will submit quarterly reports to authorities, ensuring transparency. Stakeholders can comment on the proposals by December 9.
IBC recovery on companies' fair values up, claims down
In the September quarter, recovery from defaulting companies under India's Insolvency and Bankruptcy Code (IBC) improved, with recovery reaching nearly 97% of a company's fair value, up from 84% in the June quarter. However, recovery against creditors' claims eased to 28.3%, down from 31.1%.
IL&FS group resolves debt of Rs 38,082 crore as of September-end
IL&FS Group, grappling with debt, has successfully repaid Rs 38,082 crore to its creditors by September 30, 2024. The resolution process, involving asset monetization and debt restructuring, aims to resolve a total of Rs 61,000 crore, representing a significant portion of the group's outstanding debt.
IBBI moots mediation between operational creditors & stressed companies
The Insolvency and Bankruptcy Board of India (IBBI) has proposed a new rule that would give operational creditors of stressed companies the option to pursue mediation before filing for insolvency proceedings. The goal is to expedite the resolution process for struggling businesses and reduce the burden on the National Company Law Tribunal (NCLT).
NCLT dismisses BEST's bid to be classified as secured creditor in Spark Green Energy insolvency
The bankruptcy court rejected BEST's application to classify it as a secured financial creditor for Spark Green Energy and admit its Rs 156 crore claim. Non-registration of charge led to the decision. The ruling highlights the importance of registration and clear contract terms for creditor claims in insolvency cases.
NCLT junks plea against Shapoorji Pallonji
The bankruptcy court in Mumbai has dismissed an insolvency plea by KBC Infrastructure against Shapoorji Pallonji & Co. The National Company Law Tribunal clarified that insolvency proceedings should not be misused as a debt recovery tool, especially when the debt amount is disputed and does not meet the threshold.
SC admits appeal by Dept of State Tax in Siddheshwar Industries insolvency case
The Supreme Court admits an appeal by the state tax department to be treated as a secured creditor in Siddheshwar Industries' insolvency case. It challenges the NCLAT's decision, arguing tax laws override the Insolvency and Bankruptcy Code, citing legal precedents and statutory interpretations.
NCLAT closes insolvency proceedings against JHL as Max Healthcare settles creditor's claims
The National Company Law Appellate Tribunal (NCLAT) has ended insolvency proceedings against Jaypee Healthcare, as financial creditors' dues were settled by Max Healthcare with a Rs 1,035.29 crore payment. The CIRP was initiated by NCLT following a petition by JC Flowers Asset Reconstruction Ltd.
IBC may get a voluntary group insolvency mechanism soon
India is introducing a voluntary group insolvency framework under the Insolvency & Bankruptcy Code to streamline the resolution of interconnected entities within a corporate group. Initially, it will exclude solvent companies and multinational groups. This initiative aims to speed up resolutions, particularly in cases like Videocon and others, by allowing creditors to choose coordinated or separate processes.
Creditors delayed resolution process for Jet Airways, winning bidder tells SC
Jalan Kalrock Consortium, granted ownership of Jet Airways, claims creditors have delayed the resolution process. The consortium faces Supreme Court appeals from banks accusing it of payment defaults. Banks argue delays are not their fault, while the consortium cites procedural hurdles causing financial losses. Jet Airways plans to relaunch in 2024 after being grounded since 2019.
SC revives Adani Power's Rs 27,000 cr bankruptcy resolution for KSK Mahanadi project
The Supreme Court overturned the Telangana High Court¡¯s order, allowing insolvency proceedings for Adani Power's Rs 27,000-crore bid for the 1,800 MW KSK Mahanadi project to proceed, stating the HC had no jurisdiction. This decision impacts a long-pending corporate debt resolution.
NCLT directs to initiate insolvency proceedings against Syska LED Lights
The NCLT has initiated insolvency proceedings against Syska LED Lights after admitting a Rs 7.70 crore plea from Sunstar Industries. The tribunal appointed an interim resolution professional, rejecting claims of a pre-existing dispute and non-conformity with IBC provisions.
Lavasa creditors set eligibility floor to begin resolution 2.0
Creditors of Lavasa Corp, India's first private hill town project, have set new eligibility criteria for prospective bidders after a failed attempt earlier this year. They require a ?100 crore net worth and a ?25 lakh refundable deposit. Lenders are also considering appointing a new resolution professional and process advisor.
IBBI tweaks norms to speed up insolvency resolution in housing
The IBBI has introduced amendments to the Insolvency Resolution Process for Corporate Persons, effective from September 24. These changes include appointing an interim representative for large creditor groups, like homebuyers, to ensure their effective representation during insolvency proceedings. This aims to enhance efficiency and fairness in the insolvency process.
HDIL Promoter Wadhawan approaches NCLT seeking reconduct of insolvency process
Rakesh Wadhawan, former promoter of Housing Development & Infrastructure Ltd, has approached the National Company Law Tribunal to restart the company's corporate insolvency resolution process. He claims the company's assets, including intangible ones, were undervalued and seeks to submit a new resolution plan. The defunct realty firm reportedly holds significant land and Slum Rehabilitation Authority rights in Mumbai.
Spicejet faces another insolvency plea from operational creditor; NCLT issues notice
The National Company Law Tribunal has issued a notice to SpiceJet over a plea by Techjockey Infotech Pvt Ltd, claiming a default of Rs 1.2 crore. SpiceJet is already facing multiple insolvency petitions from various creditors. The next hearing is scheduled for November 14.
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