Cabinet approves amendments to India's insolvency and bankruptcy code

Share
Cabinet approves amendments to India's insolvency and bankruptcy code

He added that the proposed ordinance is expected to be effective from Thursday after President approves it.

Chairman and MD of JSW Group Sajjan Jindal had on Tuesday tweeted that it will be a set-back to the credible IBC process if the existing promoter re-acquires the asset with a haircut without Right of Recompense to Banks.

The Code provides for a market-determined and time-bound insolvency resolution process.

But, instances of the possibility of promoters wresting back control of a company under the insolvency process have anxious banks.

On speculation that the ordinance will limit wilful defaulters from picking up stressed assets, Mr. Jaitley said: "I won't react on its contents as the recommendations are still with the President and till it gets the assent, we normally don't comment".

It will also keep out a person who is a promoter or in the management or control of such persons whose account is classified as non-performing assets beyond a prescribed duration.

Since the current law does not say anything about promoters of defaulting companies to regain control of the assets facing insolvency proceedings under the IBC, the amendment in the IBC could address this loophole. There is urgency for an ordinance as bids for 12 distressed companies are due for examination in January, which marks the end of the six-month window allowed to find a debt recast plan.

The Resolution Professional under the provisions of the IBC shall submit to the Committee of Creditors all resolution plans which comply with the requirements of the IBC and regulations made thereunder, along with details of preferential transactions under Section 43, undervalued transactions under Section 45, extortionate credit transactions under Section 50, and fraudulent transactions under Section 66 of the IBC noticed by him.

"Some changes have been proposed to the Insolvency and Bankruptcy Code and since these are being done by an ordinance, we can not give the details of the proposals that the cabinet has recommended to the president", Union Finance Minister Arun Jaitley announced, while addressing the media here.

Share

Advertisement

Related Posts

AFP gears up for possible NPA attacks
Dureza on Wednesday confirmed Duterte's latest decision in a statement but declined to say if further meetings had been scheduled. The government declares a ceasefire with communists every December to allow them to visit their families during the holidays.

Delta Air Lines, Inc. (NYSE:DAL) Lowered to "Sell" at Vetr Inc
Delta Air Lines had a net margin of 8.97% and a return on equity of 26.50%. (NYSE:DAL). 29,216 were accumulated by Somerset Com. COPYRIGHT VIOLATION WARNING: " Delta Air Lines , Inc". (NYSE: DAL ) have moved within the range of $43.81 to $55.75.

Forest Hill Officers Nearly Hit by Drunk Driver
A few officers in Forest Hill, Texas had a close call last week when they were almost hit by a suspected drunk driver. The Forest Hill Police Department posted the video to Facebook on Sunday, urging people to not drink and drive.

MA mandates copay-free birth control
Charlie Baker signed into law on Monday Bill H.4009 , which requires that all state insurers cover birth control without a copay. As for MA , the blue state responded to the Trump administration legislatively.

1 escaped Palo Alto inmate arrested in Stockton, 1 still at large
Bivins, 47, is described as being 5 feet, 9 inches tall and 180 pounds, with brown eyes and black hair, the sheriff's office said. Santa Clara County sheriff's officials tweeted at 11:31 p.m. that they would provide an update on the investigation this morning.

The Hype Behind Alexion Pharmaceuticals, Inc. (ALXN), Washington Prime Group Inc. (WPG)
The company has a market cap of $24,237.71, a P/E ratio of 22.19, a price-to-earnings-growth ratio of 1.18 and a beta of 1.22. At the moment, the top institutional investor at Alexion Pharmaceuticals, Inc . ( ALXN ) opened at $108.05 on Wednesday.

The resemblance with his daughter Kaia is unbelievable - Gala
At right, a photo of Cindy Crawford dating back to 1984 while she was posing for a memory book for a high school of the Ilinois. Cindy Crawford and her teenage daughter look like twins in school photos the supermodel shared Tuesday on Instagram .

Keep Eye on High Institutional Ownership Stocks: Lam Research Corporation (NASDAQ:LRCX)
This repurchase authorization permits the semiconductor company to purchase shares of its stock through open market purchases. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link .

The best Currys PC World Black Friday deals 2017
Amazon is often considered the king of stores, and in this case Amazon certainly lives up to this reputation. The Xbox One X is a great buy, perhaps the best console you can buy, for 4K TV owners who are big gamers.

Netflix, Inc. (NASDAQ:NFLX) Position Decreased by Candriam Luxembourg SCA
Several equities research analysts have issued reports on the stock. (NASDAQ: NFLX ) on Tuesday, July 19 with "Outperform" rating. Nebraska-based Pittenger And Anderson has invested 0.16% in Netflix, Inc . (NASDAQ: NFLX ) to report earnings on January, 17.

© 2015 ExpressNewsline. All Rights reserved.