NCLAT concludes hearings in Binani case
The National Company Law Appellate Tribunal (NCLAT) on Thursday concluded hearings in the Binani Cement matter and reserved its order. The Aditya Birla Group-led UltraTech Cement and the Dalmia Bharat-led Rajputana Properties are in race to gain control of the bankrupt firm. Concluding the hearings, the two-member NCLAT bench, headed by its chairperson justice SJ Mukhopadhaya, also directed all parties to submit their written submissions by September 4. Senior advocate Mukul Rohatgi, appearing on behalf of UltraTech, said the company has offered more than Rs 1,000 crore than that of Rajputana.
40% haircut: SBI offloads Bombay Rayon debt
State Bank of India (SBI) has completed the sale of its Rs 2,261-crore exposure to Bombay Rayon Fashions (BRFL) to JM Financial Asset Reconstruction Company (ARC) for Rs 900 crore, according to persons familiar with the development. The lender has taken a 40% haircut on the transaction but is hoping for an upside from its 29% equity stake in the company. SBI has received Rs 840 crore in cash while the remaining Rs 60 crore is in the form of security receipts redeemable over three years. Even as a part of the loan exposure has been sold, SBI, as the lead lender, is currently running a sale process for the exposures of Bank of India (Rs 127 crore), Allahabad Bank (Rs 108 crore) and Karnataka Bank (Rs 13 crore).
JSW Energy revises offer for Prayagraj’s Bara plant
Upping the ante for the takeover of the stressed 1,980-MW Bara power plant, JSW Energy is said to have revised its offer just a day after Resurgent Power Ventures —backed by Tata Power and ICICI bank — was awarded the Letter of Intent (LoI) for the plant’s acquisition. Sources said that against Resurgent’s offer of Rs 6,086 crore, JSW has agreed to pay about Rs 6,200 crore for the power plant. Both the companies have accepted to bear the plant’s tax liabilities of about Rs 2,856 crore. According to sources, JSW was also awarded a similar LoI about three weeks ago, but its previous offer did not include the promise of bearing tax liabilities
Trustees of MF cos have fiduciary duty to investors: Calcutta HC
Trustees of mutual fund companies can no longer wash their hands of liability in negligence suits, given the fiduciary duty owed by them to investors. A ruling by the Calcutta High Court, in a dispute between five directors of the trustee board of JP Morgan Mutual Fund, and ITC Ltd, has underlined the responsibility of directors of Trustee Company of mutual funds for promises made to investors. The observation was part of the judgment passed on a petition filed by the FMCG major against JP Morgan Mutual Fund and its trustee directors for incurring losses of over 39 crore on investments made in the scheme information document (SID) provided by the mutual fund house in 2014.
NCLT orders insolvency proceedings against Ind-Bharat Energy; appoints IRP
The Hyderabad Bench of the National Company Law Tribunal has permitted corporate insolvency proceedings against Ind-Bharat Energy (Utkal Limited), as per the provisions of the Insolvency and Bankruptcy Code, 2016 paving the way for resolution. The Tribunal, while delivering its order on petitions filed by Bank of Baroda and Macquarie arm MAIF Investment India pte Limited, Singapore, to initiate insolvency proceedings and staking claims respectively, appointed Udayraj Patwardhan as the insolvency resolution professional.
NCLT gives go-ahead to Idea-Vodafone merger
The National Company Law Tribunal (NCLT) approved the merger of Idea Cellular and Vodafone India, clearing the last hurdle to the creation of India’s largest mobile phone company with the most subscribers and revenue share, displacing Bharti Airtel, which has held the top spot for about 15 years. A senior executive of the Aditya Birla Group, of which Idea Cellular is a part, confirmed the NCLT nod, saying “announcements would be made on Friday”. The new entity will kick off with 440 million subscribers, 34.7% revenue market share (RMS), revenue of more than Rs 60,000 crore and combined debt of over Rs 1.15 lakh crore.
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