Page 2 - Debt Recovery

Subscription of Rs 1,200 cr rights to aid Rs 584 cr debt repayment: Suzlon

Suzlon Energy would be able to pare its debt by Rs 583.5 crore with full subscription of its Rs 1,200 crore rights issue which opened on Tuesday, the company said. "Rs 583.5 crore debt will be repaid with the assumption of full subscription of Rs 1,200 crore rights issue opened on Tuesday," Suzlon Group Chief Financial Officer Himanshu Mody said in a virtual press conference. He said the total debt of the company was Rs 3,200 crore as of June quarter 2022-23 and the company would be able to repay the remaining debt in the next eight years. Mody emphasised that the company would have much leaner, healthier and better balance sheet after the issue and there will be no decline in the promoters' holding after the issue. About an earlier instance of decline in promoter holding, he said it happened due to conversion of certain bonds (debt) into equity (under the debt restructuring plan). Earlier this month, Suzlon Energy had said its promoters had reconfirmed their participation in the

Debt recovery via insolvency cases at 31%; 47% cases liquidated: Report

Nearly half of the 3,247 insolvency cases have been resolved through liquidation, and only a paltry 457 or 14 per cent of them through asset sale as per their lenders-approved resolution plans, a report said on Friday. Even the various resolution processes have witnessed the recovery of debt of just 31 per cent on an average, said the data from the Insolvency & Bankruptcy Board of India. The data which covers all the cases since the implementation of the Insolvency and Bankruptcy Code (IBC) five years ago till December 2021 reflects very slow pace of the process, according to an analysis by Icra Ratings. Liquidation means lenders or financial firms face the maximum brunt of losses on their books. Of the Rs 7.52 lakh crore claims made by the creditors on their borrowers, the lenders could realise only Rs 2.5 lakh crore, reflecting the pains of liquidation that lenders were forced to suffer, Icra Ratings said in its analysis. While various NCLTs (National Company Law Tribunals) have

Need strict debt recovery mechanism to boost lending: Andromeda CEO

With the economy coming back on the rails post-COVID-19 pandemic, the Reserve Bank of India may consider a strict debt recovery mechanism with regulatory backing to boost activities of lending institutions and ensure easy availability of funds for individuals, V Swaminathan, CEO Andromeda & Apnapaisa, said. Having gone through a rough patch following the outbreak of the pandemic and subsequent lockdown, the lending institutions are expecting buoyancy in growth in the next financial year beginning April 1, he said. "As the entire economy is coming back on track, we have witnessed an overall growth of around 30 per cent year-on-year across all the segments. The next financial year we are expecting to continue at the same pace, as the market sentiment is positive and the projections are progressive," Swaminathan said. He further said that since COVID-19 struck, banks have become quite selective in terms of their exposure towards lending through partners and NBFCs as part of internal .

Future Retail pays $14 million interest on USD notes in grace period

Debt-ridden Future Retail has made a payment of $14 million for interest due on the dollar-denominated notes (USD Notes) listed on the Singapore Stock Exchange after missing the due date last month.

Valuation of SBI, subsidiaries can be better: Chairman Dinesh Kumar Khara

The early numbers indicate that we have seen traction in the retail book. But, not much traction was seen in the corporate book, said Dinesh Khara, Chairman, SBI

Suraksha Group seeks more time to submit final bid for Jaypee Infratech

This is the fourth round of the bidding process in the matter of JIL bankruptcy case.

SBI to conduct e-auctions of 12 bad accounts this month to recover dues

SBI will conduct e-auctions of 12 bad accounts this month to recover dues of over Rs 506 crore under sale to asset reconstruction company (ARC) mechanism

Par panel asks NHAI to explore debt restructuring, raise long-term funds

A Parliamentary panel has asked NHAI to explore restructuring of existing debt and look for options to raise long-term funds.

Digital transformation: E-lenders rely on tech, not recovery agents

The moratorium, announced in the wake of the pandemic, has put several digital lenders out of business, say people familiar with the matter

RBI fines Bajaj Finance Rs 2.5 crore for recovery agent harassment

Central bank says firm violated a specific direction to ensure full compliance with fair practices code in letter and spirit

Promoters of loan defaulting companies to soon face crackdown by lenders

With apex court's backing, banks to speed up enforcing personal guarantees

Adopt fair practices to prevent illicit debt recovery methods: RBI to ARCs

RBI asked ARCs to adopt a board-approved 'Fair Practices Code', which, among other things, should prohibit the use of uncivilised, unlawful and questionable behaviour for recovery of loans

Covid-19 pandemic may set back banks' recovery by years, says S&P

It also expects non-performing assets (NPAs) to hit a fresh high this year.

Individual insolvency rules: Breach of personal guarantee is quite severe

The law can help keep a check on instances where loans are given not on the basis of the debtor's creditworthiness, but because of a personal guarantor

Consumer forum isn't for debt recovery cases

The National Commission held that a consumer forum is not the right authority for Debt Recovery Tribunal cases, and dismissed the petition

Defaulters can't be given endless opportunities, warns Arun Jaitley

Close to 95,000 cases involving more than Rs 5 lakh crore are pending before debt recovery tribunals across the country

Stepping up debt recovery

Amendments in debt recovery laws bring the rules in line with the recently introduced Insolvency and Bankruptcy Code, though it will take some time before changes are seen on the ground