IBBI cancels registration of an IP for contravention of insolvency process
In the first ever instance of ‘harshest punishment’ on insolvency professional (IP), the insolvency regulator, IBBI, has cancelled the registration of Mukesh Mohan, for contravention of insolvency process of four corporate debtors. Declaring Mohan as a person “not fit and proper” to continue as an IP, the IBBI has also debarred him from seeking fresh registration as an IP or providing any services under the insolvency and bankruptcy code (IBC) for 10 years. This disciplinary committee’s order — issued on August 23 — will come into effect in 30 days from this date, according to the Insolvency and Bankruptcy Board of India (IBBI).
IVRCL’s insolvency resolution period extended by 90 days
The National Company Law Tribunal (NCLT), Hyderabad has extended the duration of the corporate insolvency resolution process period for IVRCL Ltd by an additional 90 days beyond the original 180 days. The decision follows a resolution passed in a meeting of the Committee of Creditors (CoC) of the Hyderabad-based construction and Infrastructure Company. The company’s Insolvency Resolution Professional (IRP) had filed an application with the NCLT on August 21 and the Tribunal allowed the extension of the deadline. The CoC sought additional time as the resolution applicants are in the process of doing due diligence of the corporate debtor and submitting resolution plans.
Battle for Bombay House: Cyrus Mistry gets partial relief from NCLAT – Here are details
In a partial relief for Cyrus Mistry, the National Company Law Appellate Tribunal (NCLAT) on Friday restrained Tata Sons from forcing him out of the company as a shareholder but refused to stay the conversion of the holding firm into a private company from a public limited one. The restraint on Tata Sons shall remain in force till the appellate tribunal hears the merits of Mistry’s petition challenging his ouster as chairman of the group holding firm in October 2016, which has been upheld by the Mumbai bench of the National Company Law Tribunal (NCLT).
Baba Ramdev’s Patanjali challenges Ruchi Soya outcome; moves NCLT against Adani Wilmar’s winning bid
Baba Ramdev’s Patanjali has moved National Company Law Tribunal (NCLT) against the decision of Ruchi Soya’s lenders selecting the offer of Adani Wilmar for the bankrupt company under the Insolvency and Bankruptcy Code (IBC). The NCLT will hear the matter on August 27. Patanjali and Adani Wilmar were engaged in a long-drawn battle for Ruchi Soya. Patanjali was first chosen as the highest bidder for the company, following which Adani Wilmar was given a chance to revise its offer under a clause. Eventually, Committee of Creditors (CoC) voted to approve Adani Wilmar’s bid. According to PTI, Adani Wilmar emerged the highest bidder with a Rs 6,000 crore offer, while Patanjali fell short of Rs 300 crore as it offered Rs 5,700 crore.
Stressed power assets: Banks eye higher provisions as August 27 deadline approaches
With the deadline for the resolution of at least 60 large assets — each above Rs 2,000 crore — set to expire on August 27, banks are staring at a big jump in provisions as insolvency proceedings will need to be initiated for these accounts. The list of assets includes around 34 from the power sector involving a bank exposure of approximately Rs 1.74 lakh crore. State Bank of India (SBI) is close to resolving seven to eight distressed power sector accounts with a debt of Rs 17,000 crore, the bank’s MD Arijit Basu told a business news channel on Friday.
Trading hours extended for SLB segment
Press Trust of India With a view to facilitate physical settlement of equity derivatives contracts, market regulator SEBI on Friday extended the trading timings in the securities lending and borrowing (SLB) segment till 5 pm. Currently, trading is allowed in the segment from 9.55 am till 3.30 pm. The SLB mechanism allows short-sellers to borrow securities for making deliveries. The move is aimed at facilitating physical settlement of equity derivatives contracts. According to SEBI, the permission is subject to risk management system and infrastructure of stock exchanges and clearing corporations commensurate with the trading hours.
BRS Group highest bidder for SevenHills hospital
Billionaire BR Shetty’s Dubai-based group, owner of London-listed NMC Healthcare, has emerged as the highest bidder for debt ridden SevenHills Hospital, multiple sources have confirmed to ET. Philanthropic initiative Reliance Foundation, investment bankers JM Financial, private equity player KKR and the Piramal Group are among the others that were in the fray for SevenHills, which has a hospital each in Mumbai and Visakhapatnam. With an estimated debt of 1,270 crore, SevenHills went under the hammer this year after lenders led by Axis Bank and a State Bank of India consortium initiated insolvency proceedings against the chain founded by Dr Jitendra Maganti, who is also its managing director.
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