Page 8 - Insolvency And Bankruptcy Code

NOIDA not financial creditor but operational creditor under IBC: SC

The Supreme Court on Tuesday held that the New Okhla Industrial Development Authority (NOIDA) is not a financial creditor but an operational creditor under the Insolvency and Bankruptcy Code (IBC).

Top headlines: Sebi panel to study IPO books, Byju's sets US targets

Business Standard brings you the top headlines on Wednesday

NPA: A monster created by RBI's forbearance?

In August 2008, the RBI allowed banks to restructure bad debt. It was a one-time measure put in place till June 30, 2009, but the forbearance ended almost a decade later

NCLT allows Future Retail more time to file reply to insolvency plea

Amazon moves application, says Future Retail and banks are colluding to deny its rights.

Petition for insolvency gets time-barred if filed after 3 years: NCLAT

A former managing director of a Dutch company had moved tribunal seeking payment of salary arrears from its Indian arm.

Lenders can invoke personal guarantees in IBC cases, says Supreme Court

IBC provision requires initiation of CIRP to proceed against personal guarantors

Recoveries by financial creditors under IBC shrink to 33%, shows data

It was 39.3 per cent as of March 2021, and as high as 46 per cent till March 2020, according to the Insolvency and Bankruptcy Board of India (IBBI) data

Retail investors put over Rs 2,000 cr in bankrupt firms, hoping for revival

Smaller companies popular for bets, keeping retail investors belief there is a possibility of bigger gains from a smaller base.

Resolution primary objective of IBC; but recovery important too: SBI MD

Financial and operational creditors owe money to companies facing insolvency proceedings and so recovery has to be an important factor while achieving resolution of stressed assets, he noted

Comparing realisations with outstanding loans not reasonable, says RBI DG

Admitting that there have been concerns, Rao said one needs to understand that the value of the asset may have already deteriorated by the time it comes up at the courts

Govt seeks inputs on tackling cross-border insolvency: Union Minister Rao

Union Budget in February talked about updating the Insolvency and Bankruptcy Code to enable cross-border dispute resolution.

Jeff Bezos vs Kishore Biyani 2.0: RIL may pick up FRL through insolvency

The tactic is not new for Reliance. In 2020, Reliance Industries acquired 37.7% stake in textile manufacturer Alok Industries Ltd for Rs 250 cr.

Top headlines: LIC valuation, Ola to recall units, and more

Read out the top news headlines and other important topics for the day and related information in the section below.

'Uncertainty over Reliance Industries deal drove FRL lenders to IBC'

Protracted litigation, safeguarding bankers' interest also led to the action

HDFC moved NCLT against SITI Networks claiming default of Rs 296 cr

SITI Networks has received a notice issued by the Mumbai bench of the National Company Law Tribunal over the petition filed by HDFCL, the Essel group firm said in a regulatory filing on Thursday

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

UK-based investor Nithia Capital eyes more acquisitions in steel space

Firm has been active in Indian steel space the past few years. Earlier in the month, it completed acquisition of Crest - under IBC - for a consideration exceeding Rs 600 crore

IBBI reduces timelines for activities under voluntary liquidation process

According to an official release, it has been noticed that there has been a substantial delay in the completion of voluntary liquidation process

Srei founder Hemant Kanoria urges RBI governor not to accept KPMG report

Sources say he has pointed out that any action based on "improper" report may hamper ongoing resolution process being undertaken by RBI's administrator under IBC

IBBI amends voluntary liquidation process regulations to streamline it

The Insolvency and Bankruptcy Board of India (IBBI) has amended regulations pertaining to voluntary liquidation process as part of efforts to streamline the process. Anoop Rawat, Partner (insolvency & bankruptcy) at Shardul Amarchand Mangaldas & Co, said the amendment seeks to streamline the voluntary liquidation process by reducing the timelines and imposing greater responsibilities on liquidator. "The requirement of new form H relieves some burden off the adjudicating authorities, with relevant data and satisfaction of compliance checks being available to it in a structured tabular format. "This shall aid in further enhancing the freedom of exit for the investors in line with India's ambitious goals of providing ease of doing business to investors during all the phases of the life-cycle of businesses," Rawat said. IBBI, a key institution in implementing the Insolvency and Bankruptcy Code (IBC), has notified the changes in the voluntary liquidation process regulations.