Tata Steel opposes move to allow Liberty bid for Bhushan Power
Tata Steel on Monday alleged that it was wrong on the part of the National Company Law Tribunal (NCLT) to allow the late bid submitted by Liberty House for Bhushan Power and Steel (BPSL). The UK-based firm, it said, was time and again making a mockery with the timelines set for the resolution process of the debt-ridden firm. Senior advocate Abhishek Manu Singhvi, appearing on behalf of Tata Steel, said the UK-based firm had failed to file requisite documents to show its eligibility despite the resolution professional (RP) giving it five opportunities since the time of submission of expression of interest (EoI).
Seeks insolvency process: ICICI Bank moves NCLT against Essar Power MP
ICICI Bank has moved the National Company Law Tribunal (NCLT) seeking initiation of insolvency proceedings against Ruias-promoted Essar Power MP that runs the 1,200-MW Mahan plant. The matter will come up for hearing on Tuesday. The lender’s move is under Section 7 of the Insolvency and Bankruptcy Code (IBC). A consortium of lenders, led by ICICI Bank, has an exposure of Rs 5,330 crore to the Mahan project, including Rs 1,370 crore by the lead lender. The other lenders with exposure of more than `500 crore each in the project are PFC, REC, PNB and IDFC.
Union Bank of India files insolvency plea against Rolta
Union Bank of India has filed an insolvency petition against Rolta India in the Mumbai bench of the National Company Law Tribunal (NCLT), people aware of the development said. The company’s total debt stood at Rs 5,085 crore at the end of March. Rolta India joins GMR Rajahmundry and GVK Power (Goindwal Sahib) in the list of assets which have been referred for resolution under the Insolvency and Bankruptcy Code (IBC) after the six-month period for resolving them by other means ended on August 27.
Sidbi may take IL&FS to National Company Law Tribunal
The Small Industries Development Bank of India (Sidbi) may file a case in the National Company Law Tribunal (NCLT) against debt-laden Infrastructure Leasing & Financial Services Ltd (IL&FS) for not repaying its term deposits, said two people familiar with the plan. Such a move could exacerbate the chaos in the markets sparked by IL&FS defaulting on repayments and having its debt rating downgraded. “IL&FS owes Sidbi a total of Rs 1,000 crore, of which just Rs 50 crore has been paid back. Rs 500 crore is already in default and some deposits are maturing next week,” said one of them. “The way things are, it feels that legal route is the best one for recovery.”
RBI’s appointments division okayed Rana Kapoor’s extension for 3 years
The appointments division of the Reserve Bank of India’s (RBI) department of banking regulation had approved the re-appointment of Yes BankNSE 2.47 % founder-CEO Rana Kapoor for a three-year term starting September 1 subject to any court order or judgement in a case against Madhu Kapur in the Bombay High Court, documents accessed by ET show. This view was later rejected by toplevel RBI officials, including the deputy governor and the governor, and Kapoor got only a short extension till January 2019.
Sebi tells rating agencies to track bond spreads
The capital market regulator has told credit rating agencies — some of which were blindsided by the aura and size of IL&FS — to review borrowers as soon as their bond prices crash, and even place such securities on ‘rating watch’ if prices continue to languish. Baffled by the rapid downgrades of IL&FS debt paper — from triple-A to ‘D’ (or, default) in less than two months — Sebi wants rating agencies to take cues from the market in evaluating bond issuers.
DoT to conduct special audit on telcos from FY2012 onwards
The Department of Telecommunications (DoT) is set to conduct ‘special audits’ of mobile phone operators from fiscal year 2011-12 onwards to check for under-reporting of revenue that might account for a sharp downturn in license fees and spectrum usage charges (SUC). Annual license fees and SUC paid to the government are calculated based on a telco’s revenue. The audit, to be resumed after a gap of three years, comes when license fee and SUC due to the government fell in 2017 by more than 23% on the year and is expected to fall this year too. This is due to the brutal price war which expedited a bloody consolidation that saw a spate of exits and M&As and dented telecom revenues.
Walmart, Flipkart plan to cross-sell private brands
The Indian unit of Walmart said it could leverage Flipkart to cross-sell each other’s private brands, use the expertise of the e-commerce firm in technology and analytics, and in turn, help them with grocery retailing. “Currently, we are selling our private brands only in our stores but don’t see any reason why we can’t sell it outside our stores. With Flipkart, there is an option,” said Krish Iyer, chief executive at Walmart India. “Flipkart is a platform and there are sellers on it, and when you talk about grocery, it’s about getting the right sellers to complete the mix. They are very good at technology, analytics and customer relationship management.”
About the Author
