Page 6 - Insolvency And Bankruptcy Code

Govt introduces a Bill in the Lok Sabha to amend insolvency law

The government on Monday introduced a bill in the Lok Sabha to amend the insolvency law and provide for a pre-packaged resolution process for stressed MSMEs. The proposed amendments would enable the government to notify the threshold of a default not exceeding Rs 1 crore for initiation of pre-packaged resolution process. The government has already prescribed the threshold of Rs 10 lakh for this purpose. The Insolvency and Bankruptcy Code (Amendment) Bill, 2021 -- which was introduced by Corporate and Finance Minister Nirmala Sitharaman -- will replace the ordinance that was promulgated on April 4 as part of efforts to provide relief for MSMEs adversely impacted by the pandemic. The bill, which was introduced in the Lower House amid Opposition din over various issues, seeks to have a new chapter in the Code to facilitate pre-packaged insolvency resolution process for corporate persons that are Micro, Small and Medium Enterprises (MSMEs). Generally, under a pre-packaged process, main

Govt considers automatic route for creditors in IBC to speed up resolution

Such a move requires strengthening of information utility system: Official

IBBI amends regulations for more transparency and accountability

Resolution professionals (RPs) will be required to inform the adjudicating authority about avoidance transactions of a corporate debtor

IBBI amends regulations for insolvency process to enhance transparency

Seeking to enhance transparency in insolvency process, IBBI has amended regulations for corporate insolvency proceedings

Inappropriate timing, sentiment lead to haircuts in IBC: Experts

Several cases such as those of Videocon and Amtek Auto have seen erosion in value during the long-drawn process of resolving non-performing assets (NPAs)

Recovery of Rs 3,000 cr from 95 IL&FS entities to spill beyond Mar 2022

According to the Board, by March 2022, around Rs 58,000 crore, or 98 per cent of the estimated amount will be recovered

India sets up bad bank to reduce debt burden, free up lenders

National Asset Reconstruction Company Ltd's paid-up capital is Rs 74.6 crore

Banker's Trust: Has crony capitalism hijacked bad loan resolution?

If bankers move fast and preserve the enterprise value of defaulting companies, recovery rate will improve even as the new insolvency law, much like the GST, remains a work in progress

Best of BS Opinion: Repeal UAPA, bankruptcy process needs a re-look & more

Here are the best of Business Standard's opinion pieces for Friday

Bankruptcy process needs a re-look

A mechanism is needed to ensure bank-led resolution- not the NCLT- is the first resort for lenders

Jaypee insolvency: IRP files Suraksha group's resolution plan with NCLT

A successful resolution of JIL will provide a big relief to over 20,000 homebuyers across various housing projects launched by the realty developer in Noida and Greater Noida (Uttar Pradesh).

Best of BS Opinion: Point of vulnerability, Covid-19 vaccines, and more

Here are the best of Business Standard's opinion pieces for Tuesday

Haircuts and settlements

Gaming the system leads to losses to lenders

India needs a new round of bankruptcy reform that won't stiff creditors

Political constraints have never allowed India's public institutions to save capitalism from powerful capitalists, something that a tough bankruptcy law was supposed to change

Brazen gaming of bankruptcy process on

According to the data from the Insolvency and Bankruptcy Board of India (IBBI), in over 363 major NCLT resolutions since 2017, banks have taken an average loss of 80 per cent

Suraksha group may have to cross legal hurdles to take control of Jaypee

With Jaypee in its kitty, Suraksha will get highly visible assets such as the Noida-Agra Expressway and the land bank around the expressway, and 730-bed hospitals in Noida and Bulandshahr

Headless NCLT awaits reforms to speed up resolution of pending cases

Over 20K cases pending and more than half linked to insolvency, bankruptcy

Long haul ahead

Jet Airways revival will be a challenge for new owners

NCLT clears Kalrock-Jalan resolution plan for Jet Airways with riders

NCLT rejects demand for historicity of slots

Insolvency law changing the way society perceives biz failures, says Sahoo

Fuelled by a huge unsatiated appetite for freedom of exit, the insolvency law is changing the way the society perceives business failures according to IBBI Chairperson M S Sahoo.