Resolution under IBC: Creditors recover Rs 5,000 crore
Creditors have recovered Rs 49,783 crore, or almost 56% of their admitted claims, from 32 stressed companies where insolvency resolution plans were approved by the National Company Law Tribunal (NCLT) by the end of June, showed data compiled by the insolvency regulator. Despite the average 44% haircut that the creditors in general had to take in these cases, analysts said the Insolvency and Bankruptcy Code (IBC) has performed much better than the earlier system where the recovery process was strenuous and yielded too little. Of course, the headline numbers are good primarily because of Bhushan Steel, which accounted for close to 64% of the total claims by these 32 firms and an equal amount in recovery.
Spectrum price: RCom gets relief from Supreme Court
The Supreme Court on Friday stayed a telecom tribunal order asking Reliance Communications to pay the difference between the price for spectrum in the 800 MHz band in 2013 and its auction price in 2015, as the company is in the process of selling part of its spectrum to Reliance Jio Infocomm. A bench led by justice RF Nariman while seeking response from the department of telecommunications stayed the Telecom Disputes Settlement and Appellate Tribunal’s August 3 order that upheld the validity of Clause 8 of Guidelines for Trading of Access Spectrum by access service providers which meant RCom needed to pay the difference in the price of spectrum bought in March 2013 and its auction-determined price in 2015 if it is putting the spectrum for trading.
Lenders seek bids to replace Gammon arm in Andhra project
A consortium of lenders, led by Canara Bank, has sought bids to replace Gammon Infrastructure Projects-owned Rajahmundry Godavari Bridge (RGBL) as the operator of a bridge across the river Godavari from the Kovvur side to the Rajahmundry side in Andhra Pradesh. “Canara Bank, acting on behalf of consortium of banks and financial institutions of the company, has been mandated to identify a suitable nominated company for substituting the company to operate the project which is operational since November, 2015,” the bank said in a public notice. As of January 2018, the bridge operator’s outstanding debt stood at `566 crore, according to a rating update by Care Ratings, which assigned a ‘D’ rating to the company on grounds of non-cooperation by it.
Malaysia’s Axiata relinquishes major rights in Idea ahead of Vodafone merger
Idea Cellular on Friday said Axiata, whose current holding in the company stands at over 16%, has relinquished “all major rights” including that of nominating a director on the board. Idea’s statement comes at a time when the telecom firm has received the government’s approval for merger with Vodafone. The combination is set to create the country’s largest mobile phone operator worth more than $23 billion with a 35% market share. Post the mega merger, Axiata’s holding is likely to reduce to about 8%. “We wish to inform you that Axiata vide its communication dated 15 August has relinquished all major rights available to it under the said agreement such as the right to nominate a director on the board of the company (including the audit committee) and the anti-dilution rights,” Idea said in a BSE filing.
States set to introduce helicopter services
Traveling in the Himalayan states is set to undergo a sea change with most tourist hotspots in the region getting helicopter services in the months to come, starting with Uttarakhand in October. The trend is also set to boost the helicopter market in India, something companies like Airbus have set their sights on. Civil aviation secretary RN Choubey said in an interview, “In the first round of regional connectivity scheme UDAN, we did not get bids for helicopter services. But it changed in the second round in which we got many. This will actually change the face of travel in the hill states. I am very excited to see the roll out.”
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