Bankruptcy Law

SKS Power insolvency: CoC receive 1,950 cr from Sarda Energy and Mining

The lenders of SKS Power Generation have received an upfront payment of Rs 1,950 crore from Sarda Energy and Mining, the successful bidder for the debt-ridden thermal power producer, the insolvency appellate tribunal NCLAT was informed on Tuesday. Moreover, allegations of "malafide" intention or aligning towards any party while approving the resolution plan from Sarda Energy were also rejected during the proceedings of the NCLAT by senior advocate Mukul Rohatahi, representing the lenders. A proper evaluation was made based on the earlier direction given by the NCLAT in this matter and a "clear decision was made" by the Committee of Creditors (CoC) of SKS Power Generation. "There is no case of malafide and we are not aligning to one party or the other. We have taken a call based on the commercial decision," he said. Torrent Power and Singapore-based Vantage Point Asset Management Pte, which were also in the race to acquire SKS Power Generation, have challenged the NCLT order, approv

IBBI releases liquidation progress report format; seeks stakeholder inputs

The IBBI has issued a new format for the submission of progress reports during liquidation process, as mandated by (liquidation process) norms, and sought stakeholder inputs by July 12. The initiative will ensure a standardised and streamlined approach to reporting, benefitting both insolvency professionals and adjudicating authorities. Also, it will ensure consistency and clarity across all submissions. "To streamline the process and ensure uniformity in the structure of these reports filed by the liquidators before the Adjudicating Authority, it would be beneficial for insolvency professionals (IPs) and the adjudicating authority if there were a standardised format," the Insolvency and Bankruptcy Board of India (IBBI) said. In February this year, IBBI in a circular, mandated that these reports be shared with members of the stakeholders' consultation committee, contingent on a confidentiality agreement. Currently, as per the IBBI's norms, the regulator outlines that the progress .

Bring InvITs within ambit of bankruptcy law for recoveries: SBI MD

The long-term nature of assets has to be supported by long-term liabilities or there has to be take-out financing. This is starting to happen with the rise in Real Estate Investment Trusts and InvITs

RCap lenders urge Hinduja Group arm to stick to resolution plan deadline

Concerned over slow progress, the lenders of debt-ridden Reliance Capital (RCAP) have asked the Hinduja Group arm, IndusInd International Holdings Ltd, to expedite the process of obtaining necessary regulatory approvals and stick to the resolution plan deadline of May 27. In a meeting held in Mumbai on Friday with the senior officials of IndusInd International Holdings' (IIHL), the lenders of RCAP said the company has to make a payment of Rs 9,650 crore to them by the said date, a source said. It is to be noted that the National Company Law Tribunal (NCLT) Mumbai, while approving the resolution plan on February 27, directed the IIHL to implement the resolution plan within 90 days i.e. May 27. As per the approved resolution plan, IIHL has to make an upfront payment of Rs 9,650 crore to the RCAP lenders. According to the sources, the lenders expressed concerns over the slow progress towards the implementation of RCAP resolution plan, as IIHL is yet to receive the crucial IRDAI approv

NCLT orders Mehul Choksi-promoted Gitanjali Gems' liquidation under IBC law

The National Company Law Tribunal (NCLT) has ordered liquidation of jewellery retailer Gitanjali Gems, promoted by absconding diamantaire Mehul Choksi, under Section 33 of the Insolvency and Bankruptcy Code, 2016. The bench also appointed Santanu T Ray as the liquidator, who will complete the liquidation process as per the provisions of the IBC, 2016, according to an NCLT order, filed on BSE. The resolution professional of the jewellery retailer, Vijay Kumar Garg, filed the application for liquidation in NCLT. Garg informed the tribunal that on account of the alleged fraud perpetrated by Gitanjali Gems and its officers, the affairs were under investigation by multiple law enforcement agencies like the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI). He said that the ED had issued orders attaching the properties of Choksi. In his application, Garg informed the tribunal that immediately after the appointment he wrote to various investigation authorities ..

NCLAT stays NCLT ruling in Dream 11 case, bars IRP actions until Feb 23

The National Company Law Appellate Tribunal on Wednesday stayed the NCLT Mumbai bench order to initiate a corporate Insolvency Resolution Process (CIRP) against Sporta Technologies, which operates the fantasy sports platform Dream 11. However, it has also directed the Interim Resolution Professional (IRP), appointed by the National Company Law Tribunal (NCLT) after suspending the board of Dream 11, not to take any further steps till the next date of hearing, scheduled for February 23. A three-member bench of the appellate tribunal also issued notice to the IRP of Sporta Technologies and Resolution Professional of Reward Business Solution, directing them to file a reply within a week. "List this Appeal on 23.02.2024," the National Company Law Appellate Tribunal (NCLAT) order said, adding that "In the meantime, the order impugned shall remain stayed. No steps, till the next date shall be taken by the IRP in the CIRP". NCLAT directions came over an urgent petition moved by Dream11 ...

Crypto exchange FTX expects to repay customers in full: Bankruptcy lawyer

Restructuring advisers will need to examine all of the millions of claims that have been filed against FTX to weed out those that are not legitimate, lawyer Andrew Dietderich said

Go First's lenders to seek extension of insolvency process by 60 days

Under the country's Insolvency and Bankruptcy Code, the National Company Law Tribunal (NCLT) has the authority to extend the resolution timeframe to a maximum of 330 days

Insolvency professionals can be crucial in resolution process: Report

Insolvency professionals can play a crucial role in the pre and post-Corporate Insolvency Resolution Process stages, according to a report. The report by the Indian Institute of Insolvency Professionals of ICAI (IIIPI) also highlighted various methods and processes to diagnose corporate distress at an early stage and suggested interventions to mitigate insolvency processes. Exploring the advantages of addressing stress early, the report -- Roles of Insolvency Professionals Across Insolvency Value Chain from Incipient Stage till Post-Resolution Stage -- delved into areas to identify and control the initial signs of distress, providing valuable insights for effective intervention. It also underscores the importance of addressing stress early to prevent the escalation of financial difficulties, positioning companies for long-term success. "This report will help the Insolvency Professionals (IPs) to manage the stress in companies at both, pre and post CIRP stages as they bring speciali

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

NYC, San Francisco offices brace for pain from WeWork's bankruptcy

The coworking giant's spiral into bankruptcy hit landlords along the way as it renegotiated and sought to exit many leases

'WeWork India's image may take a hit as global entity files for bankruptcy'

Meanwhile WeWork India, backed by Embassy Group, has maintained that it operates independently of WeWork Global, and its operations will not be affected in any manner

High interest rates causing surge in company insolvencies in England

Official figures Tuesday showed the number of company insolvencies in England and Wales jumped 10% year-on-year to 6,208 in the third quarter

Govt changes insolvency rules to exclude leased aircraft from moratorium

Some provisions of the Indian Bankruptcy Code will not apply to transactions relating to aircraft, aircraft engines, airframes and helicopters, the notice showed

FTX managers sue Sam Bankman's parents to recover 'misappropriated funds'

FTX owed customers approximately $8.7 billion when it filed for bankruptcy and about $7 billion in liquid assets have been recovered so far

Drug retailer Rite Aid Corp preparing to file for bankruptcy: Report

Regionally focused Rite Aid operates more than 2,330 stores in 17 U.S. states, although it is much smaller than rivals like Walgreens Boots Alliance and CVS Health

Billions in corporate debt: Wave of bankruptcies threatens global economy

Rising tide of distress is, of course, to certain degree by design. Caught by surprise as inflation surged, monetary policymakers have been aggressively draining cash from the world's financial system

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

Go First lessors' request to repossess planes on hold, not rejected: DGCA

DGCA says can proceed to de-register Go First aircraft after moratorium lifted

Bureaucracy is bogging down bankruptcy deal, says CJI N V Ramana

The top court gave another week to the government's lawyer to sort out the differences between the Enforcement Directorate and corporate affairs ministry.