Page 2 - Latest Updates on IBC
Best of BS Opinion: Power for all, Mutual funds' growing heft & more
Here is the best of Business Standard's opinion pieces for today
 "Best of BS Opinion: Power for all, Mutual funds' growing heft & more")
A performance appraisal of IBC
Despite potential biases introduced by the Dosa approach in analysing its efficacy, the law appears successful in delivering on its key parameters
 "A performance appraisal of IBC")
Learnings from IBC suggest need for 'some course correction': RBI chief Das
The IBC, which came into force in 2016, is a key legislation aimed at resolving stressed in a time-bound and market-linked manner
 "Learnings from IBC suggest need for 'some course correction': RBI chief Das")
IBC yet to address resolution for insolvencies of group companies
Group insolvency remains an ill-defined area in the IBC. Here's why it needs a clear framework
 "IBC yet to address resolution for insolvencies of group companies")
IBBI forms panel of 787 professionals to expedite resolution process
This move by the insolvency regulator aims to avoid delays and preserve asset value amid rising stressed cases
 "IBBI forms panel of 787 professionals to expedite resolution process")
MCA planning new portal to streamline IBC cases, boost transparency
The IBBI would also be able to keep track of the happenings in the NCLT through this portal
 "MCA planning new portal to streamline IBC cases, boost transparency")
Government may implement 2-month asset freeze of airlines under insolvency
To prevent immediate repossession of aircraft by lessors after default, the government is contemplating a two-month moratorium rule for the aviation sector
 "Government may implement 2-month asset freeze of airlines under insolvency")
Lanco Amarkantak Power creditors to vote on Adani Power's Rs 4,100 cr bid
An unsolicited bid of Rs 3,650 crore was submitted by Adani Power, which was later improved to Rs 4,100 crore
IBC has been revolutionary, but it's time for improvement and tweaks
Insolvency cases remain pending for months and years, deterring stakeholders. It is imperative that litigation be reduced
 "IBC has been revolutionary, but it's time for improvement and tweaks")
IBC recoveries declining, resolution timelines getting prolonged: Crisil
In a note to observe the seven years of the Insolvency and Bankruptcy Code (IBC), the rating agency said the recovery rates have fallen to 32 per cent in September 2023, from 43 per cent in March 2019
 "IBC recoveries declining, resolution timelines getting prolonged: Crisil")
Manufacturing tops insolvency cases, real estate a close second
The recovery rate from personal guarantors currently stands at 5.22%. This rate is anticipated to rise following the Supreme Court's recent ruling affirming the constitutionality of the IBC provisions
 "Manufacturing tops insolvency cases, real estate a close second")
Liquidation share in insolvency cases on the decline, shows IBBI data
Experts attribute it to initial economic conditions of companies entering CIRP
 "Liquidation share in insolvency cases on the decline, shows IBBI data")
Adani, JSW Cement, and ArcelorMittal eyeing Vadraj Cement in IBC Sale
The Bombay High Court ordered the winding up of Vadraj Cement in August 2018, leading to the decision to sell the company under the IBC process
 "Adani, JSW Cement, and ArcelorMittal eyeing Vadraj Cement in IBC Sale")
Debt guarantees
Supreme Court has strengthened the IBC framework
 "Debt guarantees")
IIM Ahmedabad study finds significant improvement in firms post IBC
The study found that hotels and restaurants have had the highest recovery rate for creditors under the IBC while electricity, gas, and water supply firms have the lowest recovery rates
Insolvency and Bankruptcy Code: Personal guarantors get no SC reprieve
Top court upholds constitutionality of key provisions
 "Insolvency and Bankruptcy Code: Personal guarantors get no SC reprieve")
SAT partially upholds market regulator Sebi order in Deccan Chronicle case
In May 2022, Sebi had issued an order alleging manipulation in financials, lapses in buyback procedures, and failure to submit disclosures on material information
 "SAT partially upholds market regulator Sebi order in Deccan Chronicle case")
Go First lenders likely to recover Rs 1,600-1,900 cr through Thane land
The Go First lenders are seeking to recover around 25-30% or Rs 1,600 crore-Rs 1,900 crore of their exposure to the airline
 "Go First lenders likely to recover Rs 1,600-1,900 cr through Thane land")
IBBI likely to bring out discussion paper on real estate insolvency
Increased involvement of the Real Estate Regulatory Authority, or RERA, could also be proposed in the upcoming discussion paper
 "IBBI likely to bring out discussion paper on real estate insolvency")
In IBC, no automatic secured creditor tag for govt's statutory dues
The Ministry of Corporate Affairs (MCA) would consider issuing this as a clarification, if needed, following the recent Supreme Court (SC) judgment in the Rainbow Papers case, the senior official said
 "In IBC, no automatic secured creditor tag for govt's statutory dues")
