Page 3 - Latest Updates on IBC
How to loot the public sector banks
Banker-borrower collusion has led to a surge in IBC cases, with pre-planned fraud that results in minimal realisable value
 "How to loot the public sector banks")
Chiefs of Air India, Vistara, SpiceJet meet civil aviation minister
Air India, Vistara, SpiceJet, and IndiGo representatives thanked him for the recent amendment in IBC whereby aircraft equipment have been exempted from moratorium under the IBC
 "Chiefs of Air India, Vistara, SpiceJet meet civil aviation minister")
Govt may clarify prospective clause of IBC exemption for aviation
The High Court has asked the government for its response to a plea by a Gofirst lessor
 "Govt may clarify prospective clause of IBC exemption for aviation")
Insolvency & Bankruptcy Code cannot be used as tool for recovery: NCLT
The Principal Bench of the National Company Law Tribunal (NCLT) was hearing the plea for initiating insolvency against Orris Infrastructure over an alleged default of Rs 3.60 lakh
 "Insolvency & Bankruptcy Code cannot be used as tool for recovery: NCLT")
IBC not recovery mechanism; dismisses plea against United Telecoms: NCLAT
This is the second such observation from the Chennai bench of the insolvency appellate tribunal this month, after declining to entertain the petition from operational creditors
Over 96,000 companies voluntarily wound up operations in last five years
From April 1, 2018 to March 31, 2023, as many as 96,261 companies exited voluntarily, invoking a section in the Companies Act
 "Over 96,000 companies voluntarily wound up operations in last five years")
Unsecured lenders' dues to be prioritised over govt's: Supreme Court
IBC will override the provisions of the Electricity Act, 2003, says bench
 "Unsecured lenders' dues to be prioritised over govt's: Supreme Court")
As business bankruptcies surge around the world, next wave could be bigger
Large defaults add to the risk of a vicious cycle of suppliers not being paid, workers losing their jobs, banks further tightening lending criteria and then more companies going bust
 "As business bankruptcies surge around the world, next wave could be bigger")
Battery maker IBC mulling ₹8,000 cr investment in Karnataka, details here
With a significant investment of approximately Rs 8,000 crore, the company intends to establish a non-captive gigafactory. Land, machinery, plant, machinery and building will be the focus of the inves
 "Battery maker IBC mulling ₹8,000 cr investment in Karnataka, details here")
MCA considering easing moratorium rules in IBC for certain sectors
Section 14 of the IBC declares a moratorium on proceedings, transfer or disposal of any of the assets of the company from the date of commencement of its insolvency
Future Enterprises invites expression of interest for assets across India
The last date of receipt of interest is set at June 25 and the provisional list will be out on July 5. The last date of submissions for objections of the provisional list is July 10
 "Future Enterprises invites expression of interest for assets across India")
IBBI proposes changes to voting on bids for bankrupt companies under IBC
IBBI has also proposed to increase the fee of the AR to be commensurate with the increased duties to double the current levels
 "IBBI proposes changes to voting on bids for bankrupt companies under IBC")
Explained: Why IBC is less bankable for the resolution professionals
Increasingly, firms are now outsourcing many of these services and using the company employees instead of getting outsiders
Congress flags low debt recovery under Insolvency and Bankruptcy Code
Congress attacked government over the low debt recovery under the Insolvency and Bankruptcy Code and asked whether it was a mechanism to rescue stressed firms or another tool for organised loot"
 "Congress flags low debt recovery under Insolvency and Bankruptcy Code")
Govt considering registration of flats even if developers go bankrupt
If this move sees daylight, it is expected to relieve thousands of homebuyers living with the scary thought of all their money going down the drain if in case their developer goes bankrupt
HC cannot interfere with resolution process of Go First: IRP tells court
Senior Advocate Harish Salve, appearing for the IRP, told the court that a writ court should not interfere in the resolution process after the insolvency application has been accepted by the Tribunal
 "HC cannot interfere with resolution process of Go First: IRP tells court")
Number of cases under IBC gone up by 24% in Q4FY23, says CARE Ratings
Only 10per cent% have ended in approval of resolution plans, while 31 per cent remain in the resolution process vs. 35 per cent as of the end of March 2022
Resolution realities
Go First's complexity will be a test case
 "Resolution realities")
IIIPI forms committee to recommend measures for growth of IBC ecosystem
The Indian Institute of Insolvency Professionals of ICAI (IIIPI) has constituted a committee to recommend measures to prepare the IBC ecosystem for the next phase of growth
Centre to come up with creditor-led insolvency resolution framework: Report
The creditors and debtors will be allowed to reach an informal agreement to resolve the bankruptcy case and later approach the NCLT to admit cases
 "Centre to come up with creditor-led insolvency resolution framework: Report")
