IL&FS moves NCLT for direct line with creditors
Debt-laden IL&FS, the holding company of the infrastructure group, has filed an application with the Mumbai bench of National Company Law Tribunal seeking permission to talk directly with creditors about resolving its staggering debt problem that has shaken markets and hurt investor sentiment. IL&FS said it will file an application for a scheme of arrangement under Section 230 of the Companies Act, 2013. This route, if permitted, will allow current IL&FS management to hold talks directly with creditors and propose a plan to resolve its problems.
Source: The Economic Times
Rescue Mission: LIC offers to hike its stake in IL&FS
As the defaults in the IL&FS group fuelled speculation of a broader debt crisis in the financial sector, the government and Reserve Bank of India (RBI) went into a huddle here on Tuesday and resolved to come out with an action plan soon to salvage the infrastructure-financing conglomerate. Emerging from the meeting chaired by finance minister Arun Jaitley, Life Insurance Corporation of India chairman VK Sharma said the insurer won’t allow IL&FS to collapse and hinted that it might increase its stake in the firm.
Source: Financial Express
Election Commission to implement SC order in year end polls
The Election Commission of India will straightaway implement the Supreme Court orders on ‘publicising’ criminal records of candidates in the upcoming assembly elections in five states and will issue a notification next week on the court’s orders as per norms, sources told ET. The move will throw a new challenge before all political parties that have been asked to ensure that each candidate in the fray must declare his or her criminal antecedents in ‘bold letters’ in forms detailed by the Election Commission.
Source: The Economic Times
Canara Bank drags GTL group to NCLT on default of over Rs 10 billion
State-run Canara Bank has moved taken telecom infrastructure player GTL group to the National Company Law Tribunal (NCLT) after the company defaulted on its debt repayment. While GTL has defaulted on Rs 4.59 billion loans from the bank, GTL Infrastructure owes Rs 5.41 billion to the lender. “Canara Bank has filed an application for initiation of corporate insolvency resolution process against GTL and GTL Infrastructure,” the companies said in separate filings to exchanges. GTL, however, claimed that it is a victim of consolidation in the telecom sector.
Source: Business Standard
Bids invited for debt ridden Videocon under insolvency resolution process
Resolution professional of debt-ridden Videocon Industries Tuesday invited bids from prospective buyers to take control of the firm, which has interest ranging from consumer electronics to oil and gas. The corporate insolvency resolution process (CIRP) of Videocon Industries Ltd, which has debt of around Rs 20,000 crore, was commenced under the Insolvency and Bankruptcy Code (IBC) following an order by the NCLT Mumbai on June 6, 2018. In a public announcement, VIL Resolution Professional (RP) Anuj Jain said insolvency resolution process in respect of 11 group companies of VIL has also commenced and for other four other entities, order is expected to be passed by the NCLT shortly.
Source: The Economic Times
BoI to withdraw plea against HDIL in NCLT
In a major relief to Housing Development and Infrastructure Ltd (HDIL), Bank of India (BoI) on Tuesday said it will withdraw the insolvency petition against the Mumbai-based property developer. The company and its lender informed a dedicated bankruptcy court in the city that they have reached a settlement formula under which HDIL will repay the bank in installments and clear all dues by August 2019. Earlier in the day, the builder had informed the tribunal that it will repay the bank’s dues through its own funds. Bank of India is seeking to recover ₹511 crore from the realty company.
Source: Live Mint
Bidding for Bharati Defense & Infrastructure re-opened
The National Company Law Tribunal (NCLT) has re-opened the bidding process for debt-laden shipbuilder Bharati Defense and Infrastructure Ltd by allowing Canadian firm Geotech Investment and Holdings Inc to participate in the resolution process under the Insolvency and Bankruptcy Code (IBC).The Mumbai bench of NCLT on Tuesday allowed Geotech Investment and Holdings to present proof and source of funds on their ₹3,167-crore resolution plan within two days and to submit a ₹10 crore earnest money deposit (EMD) by October 3.
Source: Business Line
