Page 3 - Bankruptcy

After Birmingham, Central England city of Nottingham declares bankruptcy

Nottingham, a city in central England's Midlands region, on Wednesday declared itself effectively bankrupt after its council failed to deliver a balanced budget for the year. Nottingham City Council, run by the Opposition Labour Party, issued a Section 114 notice over a "significant gap" in the local authority's budget even as it stressed that it is not bankrupt and is able to meet its staff salary obligations. The announcement makes Nottingham the second city to declare financial failure this year after Birmingham City Council issued a similar notice in September. A report discussed at the council's Executive Board meeting on 21 November outlines the council's latest financial position and highlights that a significant gap remains in the authority's budget, due to issues affecting councils across the country, including an increased demand for children's and adults' social care, rising homelessness presentations and the impact of inflation, a Nottingham City Council statement ...

IMF's second tranche finalisation to Sri Lanka in Dec: Nandalal Weerasinghe

The second tranche of the USD 2.9 billion IMF bailout for cash-strapped Sri Lanka would be finalised within the next month, central bank governor Nandalal Weerasinghe said on Friday. The government is expecting around USD 330 million as the second tranche of the USD 2.9 billion 4-year bailout, following the first one that was extended in March under the Extended Fund Facility (EFF) to support Sri Lanka's economic policies and reforms. Sri Lanka was hit by its worst economic crisis in history when the country's foreign exchange reserves fell to a critical low and the public came out on the streets to protest the shortage of fuel, fertilisers and essential commodities. We are making good progress with the first review. We will get the programme approved. What is required for that (is) assurances from bilateral creditors. The official creditor committee would be forthcoming, Governor of the Central Bank of Sri Lanka (CBSL) Weerasinghe told reporters. With that, there will be additiona

WeWork India adds 2 buildings with over 4K desks in Bengaluru, Hyderabad

Earlier this month, WeWork Inc., the parent company, filed for bankruptcy under Chapter 11 of the US Code in New Jersey

Future Retail heads for liquidation as lenders fail to get suitable buyer

Future Retail, once the crown jewel of Kishore Biyani-led Future Group, is now heading for liquidation as its lenders could not get any reasonable buyer of the debt-ridden firm. As the Committee of Creditors (CoC) rejected the sole resolution plan submitted by Space Mantra after four extensions in the deadline to complete the corporate insolvency resolution process (CIRP), the RP of the company has now approached NCLT to initiate liquidation of Future Retail (FRL). "The resolution plan submitted by Space Mantra Private has not been approved by CoC of FRL, kindly note that, the Resolution Professional (RP) has filed an application, before the National Company Law Tribunal, Mumbai Bench, for initiation of liquidation of FRL," said a regulatory filing from FRL. Last month FRL had informed that Rs 550 crore bid submitted by Space Mantra for FRL, failed to get the required number of votes in the e-voting process of the CoC. The NCLT had granted four extensions to FRL for completion of C

WeWork bankrupt: What went wrong for world's most valuable startup?

WeWork goes bankrupt after failing to recover from pandemic, failed IPO

WeWork's collapse into bankruptcy is the culmination of a years-long saga for the company, which was once the biggest office tenant in Manhattan

Japan's SoftBank makes another bet on WeWork, hoping landlords will too

WeWork's long-term lease obligations of $13.3 billion accounted for more than 70% of its total debt as of end-June

Radio Mirchi, Orange bid Rs 251 crore in race to acquire insolvent Big FM

Leading FM Radio network Radio Mirchi, a part of Entertainment Network India Limited (ENIL) and Radio Orange have bid Rs 251 crore to acquire BIG FM Radio network, sources said. Haryana-based Sapphire FM is the other bidder in the race for BIG FM, which is undergoing an insolvency process. Incidentally, Sapphire FM has also made a bid of Rs 251 crore for Big FM. The bidders couldn't immediately be reached for comments. Both the bidders -- Radio Mirchi & Orange FM consortium and Sapphire FM -- have offered to pay the bid amount within 30 days. Sources close to the process also revealed that the lenders are likely to ask both the bidders to revise their bids upward. Also, Rs 60 crore cash lying in the company's accounts will also go to the lenders, they said. After considering the cash at Big FM, the total recovery for lenders could be as high as 55 to 60 per cent against the total admitted claims of Rs 578 crore. Reliance Broadcast Network Ltd (RBNL) owned by BIG FM is the ...

J&J weighs third bankruptcy try to settle baby powder cancer case

Attorneys for some plaintiffs opposed the idea of a return to bankruptcy court

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

Wadias likely to leave Go First, show no intent to bid for grounded airline

Cash-strapped Go First filed for bankruptcy in May, blaming 'faulty' Pratt & Whitney engines for the grounding of about half its fleet

Grounded airline Go First gets expression of interest from Jindal Power

"Jindal Power was the sole successful applicant whose expression of interest was accepted by banks," said a banker with a state-run bank that has exposure to Go First

SpiceJet, aircraft lessor Celestial Aviation working towards settlement

Budget carrier SpiceJet and aircraft lessor Celestial Aviation are working towards settlement, which is in the advanced stage, insolvency tribunal NCLT was informed on Tuesday. During the proceedings, counsel appearing in the matter informed about the development and requested the National Company Law Tribunal (NCLT) to adjourn the matter, which was accepted. The development came during the hearing of a plea filed by Celestial Aviation Services Ltd, an operational creditor, to initiate insolvency proceedings against the airline. A two-member NCLT bench directed to list the matter on November 7 for the next hearing. According to some reports, Celestial Aviation Services Ltd is claiming a default of USD 29.9 million for nine aircraft. It is the fifth lessor, which had moved against SpiceJet. Some other lessors such as Willis Lease Finance, Aircastle and Wilmington have also moved pleas to initiate insolvency proceedings against SpiceJet before the NCLT. Earlier on September 5, NCLT

Aviation leasing watchdog cuts India's compliance rating amid Go First row

The courtroom battle started after Go First was granted bankruptcy protection in May. Under Indian law, that prevented lessors from recovering 50-plus grounded Airbus planes

NCLAT dismisses IDBI plea for insolvency against Cyquator Media Services

The National Company Law Appellate Tribunal (NCLAT) on Thursday dismissed the petition of IDBI Trusteeship Services challenging the order of NCLT which had denied starting insolvency proceedings against Essel group firm Cyquator Media Services. A two-member bench of the appellate tribunal observed that the default, claimed by IDBI Trusteeship, had happened during June 2020, which is covered under the period excluded under Section 10A of the Insolvency and Bankruptcy Code, 2016. Section 10A bars absolutely and forever, the filing of any application under Sections 7, 9 and 10 of the Code, for defaults committed on or after March 25, 2020 up to March 25, 2021. No application for initiation of the corporate insolvency resolution process can be filed in respect of any default that has occurred on or after March 25, 2020 till September 24, 2020, which was subsequently extended till March 25, 2021 by the government through a notification dated December 22, 2022. In June this year, the Mum

Dubai Aerospace flags corrosion in plane leased to bankrupt Go First

Foreign lessors have been engaged in a legal tussle to repossess their aircraft after the Indian airline was granted bankruptcy protection in May

UK's second-largest city Birmingham declares itself effectively bankrupt

The local authorities running Britain's second-largest city, Birmingham, have shifted focus on maintaining vital services as they declared the council effectively bankrupt due to an annual budgetary shortfall of millions of pounds. Birmingham City Council, which is run by the Opposition Labour Party and is the largest local authority in Europe comprising over 100 councillors, issued a Section 114 notice on Tuesday to say that all new expenditures with the exception of protecting vulnerable people and statutory services will stop immediately. The council said the dire financial situation arose as it must fund an equal pay liability that has accrued to date in the region of GBP 650 million to GBP 760 million, but it does not have the resources to do so. On that basis, the Council's Interim Director of Finance, Fiona Greenway, has issued a report under section 114(3) of the Local Government Act, which confirms that the Council has insufficient resources to meet the equal pay expenditur

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

NCLAT reserves order on Jalan-Kalrock Consortium's plea in Jet Airways case

The National Company Law Appellate Tribunal (NCLAT) on Monday reserved its order on Jalan-Kalrock Consortium's plea seeking more time to make payments to the lenders of the bankrupt Jet Airways. The consortium had emerged as the winning bidder for the airline, which stopped flying in April 2019 and later underwent an insolvency resolution process. The consortium is to pay Rs 350 crore to the lenders by August 31 but has sought an extension for making the payment. A three-member NCLAT bench said it will pass the order on next Monday and has granted three days' time to the parties to file their written submissions. "Heard learned counsel for the parties... orders on August 28, 2023. Parties are at liberty to file their short notes of submission of not more than three pages within three days," the appellate tribunal said. The bench would also decide the consortium's plea to consider a performance bank guarantee of Rs 150 crore as part of the payment of Rs 350 crore. The consortium h

China Evergrande Group files for bankruptcy in New York amid debt crisis

The move protects it from creditors in the US while it works on a restructuring deal elsewhere