Easier ECB norms a boost for HFCs
Simplification of external commercial borrowing (ECB) guidelines has opened a new window of funding for home finance companies and port operators in India, increasing the prospects of a fresh round of overseas borrowings. In a notification posted on its website on Friday, the Reserve Bank of India made all-in-cost ceiling for ECBs uniform at 450 basis points over the benchmark London Inter bank Offer Rate (LIBOR), doing away with different slabs for different maturities. Hundred basis points make 1 percentage point.
Source: Economic Times
State Bank of India plans recast of stressed power assets
State Bank of India is preparing a major debt restructuring and takeover plan for stressed power assets, to improve valuations and attract new owners with incentives and a quick resolution process. The country’s largest lender has called all power plant lenders in Mumbai on Wednesday for discussing a proposal that has a direct bearing on loans adding up to Rs 1.77 lakh crore in 75,000 MW stressed capacity. It has also asked the power ministry to waive transmission penalties and grant early regulatory approvals to help new promoters, said a senior government official.
Insolvency process: Adhunik Metaliks RP likely to seek more time
In an attempt to get some additional time to arrive at a successful resolution plan in order to save Adhunik Metaliks from going into liquidation, its resolution professional is likely to move the NCLT on Tuesday to exclude the “unnecessary” days lost from the stipulated period under the insolvency resolution process. The RP for the insolvent steel maker, Sumit Binani, is likely to seek exclusion of as many as 25 days from the mandated 270-day deadline under the corporate insolvency resolution process (CIRP), a source told FE.
Supreme Court questions govt move to examine HC judge contenders
The Supreme Court collegiums has questioned the government’s move to hold “detailed scrutiny” of professional record of advocates and judicial officers recommended for judgeship by high courts, but the Law Ministry continues to send a summary of the candidates’ professional track record to the body of top five judges. In July 2017, the Law Ministry had informed the Cabinet Secretary that, “now the process of detailed scrutiny of proposals received for appointment of judges from high courts has been initiated.
‘Early initiation prevents ballooning of insolvency’
In a bid to prevent chronic defaulters and fraudulent promoters from regaining control of their company, at a fraction of what they owe lenders, the Insolvency and Bankruptcy Code (IBC) was amended last year by introducing Section 29 A. However, there have been concerns on certain other clauses under Section 29A that narrows down the pool of bidders substantially. The Insolvency Law Committee (ILC) recently proposed some modifications to address the unintended exclusions, says MS Sahoo, Chairperson of the Insolvency and Bankruptcy Board of India, adding that the objective is sustainable resolution.
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