NEWS UPDATE, 9th January, 2018

Government likely to raise Rs 750 crore through NMDC divestment

The Narendra Modi government is hoping to raise Rs 750 crore from the disinvestment of state-controlled mineral producer NMDC, media reports said. The government has proposed to disinvest 1.5% stake in the National Mineral Development Corporation Ltd through Offer For Sale (OFS) at Rs 153.50 per share.

Source: Financial Express

SBI to raise up to $2 billion via overseas bonds

Country’s largest lender State Bank of India plans to raise up to $2 billion (over Rs 12,600 crore) by issuing bonds in US dollar or other convertible currency. “The executive committee of the Central Board has approved long term fund-raising in single/multiple tranches up to $2 billion,” State Bank of India (SBI) said in a regulatory filing. It said the fund-raising will take place through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during fiscal 2017-18 and 2018-19.

Source: Financial Express

NCLT admits SBI plea to initiate insolvency proceedings against Bhushan Energy

The National Company Law Tribunal (NCLT) Monday admitted State Bank of India’s plea to initiate insolvency proceedings against Bhushan Energy Ltd.The total amount in default as on 31 October was around Rs494 crore, the SBI petition said.NCLT also accepted the appointment of Navneet Kumar Gupta as the new interim resolution professional (IRP) in place of Sawant Goliawala, partner Deloitte.

Source: LiveMint

Banks may sell loans in RBI’s second list to ARCs in absence of bidders

In the absence of suitable bidders, banks may choose to sell to asset reconstruction companies (ARCs) many of the 28 stressed loan accounts the central bank asked them to resolve by 13 December or send to bankruptcy courts for launch of insolvency proceedings.These are the accounts in the second list of stressed assets issued by the Reserve Bank of India (RBI) in August. The first list with 12 accounts was issued in June.

Source: LiveMint

Govt notifies amendments to Companies Act

The government on Monday notified amendments to the Companies Act 2013, aimed at making the insolvency process more effective. The Companies (Amendments) Act 2017, which received Parliament’s nod in the just-concluded winter session, have put restrictions on managerial remuneration when a company has defaulted in its dues. Companies, which have defaulted on their dues to financial institutions, will now require the prior approval of these creditors, besides approval in a general meeting in case the payment of managerial remuneration exceeds 11% of the net profits.

Source: LiveMint

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