Tatas complete acquisition of controlling stake of 72.65% in Bhushan Steel
Tata Steel on Friday said its wholly-owned subsidiary Bamnipal Steel Limited (BNPL) had completed the acquisition of a controlling stake of 72.65 percent in Bhushan Steel, making it the first of the 12 Reserve Bank of India-recommended NPA cases to be resolved under the Insolvency and Bankruptcy Code (IBC). The government lost no time in celebrating its success. Piyush Goyal, who has been given the temporary charge of the finance ministry, tweeted: “Congrats to PM @narendramodi ji & @arunjaitley ji for a historic breakthrough in resolving legacy issues of banks.
Binani Cement’s CoC asks Dalmia Bharat to match offer of UltraTech
The Committee of Creditors (CoC) of Binani Cement on Friday asked Dalmia Bharat Cement led consortium to match the Rs 79.60 billion offer from UltraTech Cement for acquisition of the stressed assets of Binani Cement. After conclusion of the much-awaited CoC meeting, where the proposal from UltraTech was discussed in details, the lenders equivocally termed its proposal as monetarily superior but agreed to ask Dalmia Bharat Cement led consortium – Rajputana Properties Pvt Ltd (RPPL) – to match the offer from UltraTech, as per the order from the Kolkata bench of NCLT.
Government makes it easier for companies to lend to related entities
The government has lifted the restrictions that barred accompany from lending or providing security and guarantee to a private enterprise where the former has a common director, or where its director holds a stake. An official told ET that the corporate affairs ministry has issued a notification, formalizing amendments to the Companies Act that were passed by Parliament last year. The curbs had been put in place to check fraudulent transactions by promoters through shell companies.
NCLT appoints IRPs for RCom, units; stock slumps
The insolvency tribunal has named three separate interim resolution professionals (IRP) from RBSA Restructuring Advisors LLP to run Reliance Communications and its two units, Reliance Telecom Ltd. (RTL) and Reliance Infratel, as part of the bankruptcy proceedings against the Anil Ambani-owned companies. In three separate but similar orders, the National Company Law Tribunal (NCLT) on Friday appointed Pardeep Kumar Sethi for RCom, Manish D Kaneria for Reliance Infratel and Mitali Shah for Reliance Telecom as IRPs with immediate effect to seek ways to revive the companies and repay creditors.
RBI’s Feb Circular: Finance Ministry keeps up demand for relief on insolvency trigger
The finance ministry will renew calls for relaxing the Reserve Bank of India’s February stipulation that requires banks to finalize a resolution plan in case of a default on large accounts within 180 days, failing which insolvency proceedings will have to be invoked against the defaulter, an official source told FE. Most of the 11 stressed public sector banks (PSBs) that submitted their turnaround plans with the finance ministry on Thursday have expressed apprehension about this move, as they have exposure to sensitive sectors such as power, steel and textiles that account for a bulk of bad assets, said the source.
Sebi ‘disappointed’ with co secretaries for non-disclosures
Capital markets regulator Sebi today said it is “disappointed” with company secretaries for lack of disclosures regarding actions taken by stock exchanges in secretarial audits of companies. “I was rather disappointed to see that many of the secretarial audit reports did not report on the non-compliances pointed out by the stock exchanges,” Sebi chairman Ajay Tyagi said addressing an Institute of Company Secretaries of India event here.
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