Chennai: Can insolvency proceedings be initiated against a company for failing to refund the security deposit it took to lease premises? No, says National Company Law Appellate Tribunal (NCLAT). The reason such dues do not fall within the meaning of ‘operational creditor’, who along with financial creditors, can file for insolvency against a company under…
Almost 5000 companies were reported to the corporate regulator for insolvent trading in 2017 and high cash burn or inadequate cash flow was the main reason for corporate death. Regulator ASICs 2016-2017 insolvency report found administrators reported 4878 cases of insolvent trading. The next two major forms of misconduct were not undertaking director duties carefully…
British music tech startup Beatroot has ceased trading. The Manchester-based company was founded in 2015, operating an online platform which enabled record labels and publishers to pull together their music catalogue, audio files, album artwork, metadata and rights data into one place and share these with clients, streaming services and music stores. Steven Wiseglass, of insolvency…
JSW Group chairman Sajjan Jindal on Tuesday questioned the finance ministry on discriminating against clean promoters of NCLT cases by not allowing them to bid for their own assets when promoters of non-NCLT cases are allowed to retain their positions while a resolution plan is being worked out for their companies. “Existing promoters are allowed…
The insolvency laws in India have quite the complicated history to say the least. However, with the advent of the code, there have been unprecedented changes in the landscape of insolvency laws in India, most importantly the inclusion of the concept of ‘corporate insolvency resolution process’ and this is exactly what this article intends to…
As the Indian economy attempted to move from an agrarian economy and adopted economic plan to foster industrialization, major policies of the government, including legislative provisions, were directed to achieve rapid industrialization. With focus on industry and to provide basic legislative support for the development and regulation of industries, the Industries (Development and Regulation) Act…
Hindustan Dorr-Oliver owes banks over Rs1,400 crore, as of March 2017. Mumbai: Eight Capital Group and Centrum Capital Ltd are in a race to pick up a majority stake in Hindustan Dorr-Oliver Ltd (HDO), which is currently facing corporate insolvency proceedings, two people familiar with the development said. Debt-laden IVRCL Ltd, in which banks own…
NEW DELHI: The government is looking at a proposal to give higher priority to the claims of small operational creditors in cases of liquidation under the bankruptcy code, an official said. This comes after representations that small and medium enterprises (SMEs), which are suppliers of goods or services to a defaulting company, face huge losses…
By Davide Barbuscia and Tom Arnold DUBAI (Reuters) A detained Saudi billionaire who led the collapsed Saad Group is seeking to repay part of a multi-billion dollar debt to creditors under a deal that could allow his release, people familiar with the matter told Reuters. The businessman, Maan al-Sanea, was detained in October in the…
The government will come up with a new framework for valuation professionals by the end of the current fiscal, he said. (PTI) Amid differences between lenders and bidders on the proper valuation of a stressed company, the government is considering a proposal to ask insolvency resolution professionals to get the enterprise valuation of the firm…