Insolvency and Bankruptcy News - AAA Insolvency Professionals

View this email in your browser Lenders to Essar Steel move Supreme Court against NCLAT ruling Bhushan Power 'fund diversion' under CBI lens NCLAT asks IL&FS, govt about steps taken for 55 loss making red firms Jet Airways case: Dutch insolvency administrator moves NCLAT Mr. CA Suresh Kannan join as a new partner of AAA Insolvency Professionals LLP Mr. CA Vishal Sharma join as a new partner of AAA Insolvency Professionals LLP Dear    We have introduced a weekly newsletter that will cover Insolvency news in the country. Since this will be a forever evolving newsletter your feedback is important to us. You may reply on this thread with your inputs.   Lenders to Essar Steel move Supreme Court against NCLAT ruling (The Essar Steel case pertains to a 10-million tonne per annum steel mill in Gujarat, which became insolvent in August 2017, with dues of more than ₹54,000 crore.)   A consortium of lenders led by State Bank of India has filed a petition before the Supreme Court against a National Company Law Appellate Tribunal (NCLAT) ruling that Essar Steel's operational creditors have to be treated on a par with financial creditors at the time of settling claims.   The insolvency court's ruling is expected to have a far-reaching impact and could significantly improve recoveries for operational creditors, who were so far considered to be a notch below financial creditors. Continue reading Bhushan Power 'fund diversion' under CBI lens The Central Bureau of Investigation, which is probing Bhushan Power & Steel Ltd after it defaulted on Rs 47,204 crore of loans from 33 banks and financial institutions, is focussing on the alleged diversion of Rs 2,348 crore by the company to over 200 'shell and bogus' entities according to the FIR filed by it, people aware of the matter told ET.  The modus operandi of the fund diversion was similar to the one used by Bhushan Steel Ltd, which once belonged to the Brij Bhushan Singal group. The amount involved matches the figure that the income-tax department said had been diverted over a seven-year period. In addition, the CBI uncovered discrepancies between the books of BPSL and the shell companies.  Amounts totaling Rs 537.85 crore were diverted to 86 shell companies "without any obvious purpose" and were shown as payments made by BPSL, the CBI said in a complaint.  "Loans were availed of from 33 banks, purportedly for working capital and purchase of plant and machinery. However, they diverted over Rs 2,300 crore to over 200 shell companies," said one person. Continue reading NCLAT asks IL&FS, govt about steps taken for 55 loss making red firms The National Company Law Appellate Tribunal has asked from the government and IL&FS about the steps being taken for the 55 loss-making red entities of the debt-ridden group.  A two-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya has asked IL&FS and the Ministry of Corporate Affairs to file an affidavit within two weeks stating the time it would take to decide on it.  The appellate tribunal has also asked as to whether any such red entities could be categorized into a green or amber list of IL&FS companies.  Meanwhile, during the course of hearing, IL&FS informed that three amber listed companies would be upgraded to green entities as they have signed a term sheet with their lenders for the restructuring of their debts, etc. Continue reading Jet Airways case: Dutch insolvency administrator moves NCLAT (A three-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya has also asked the Dutch bankruptcy administrator to assist in the insolvency proceedings of Jet Airways which is currently going on in India.) Dutch Bankruptcy administrator on Friday moved the National Company Law Appellate Tribunal (NCLAT) on the Jet Airways matter, which has agreed to hear the case. A three-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya has also asked the Dutch bankruptcy administrator to assist in the insolvency proceedings of Jet Airways which is currently going on in India. Furthermore, the Dutch insolvency court administrator has agreed before the Tribunal to not sell the confiscated assets of the debt-ridden carrier.   It may be noted that NCLAT has also issued a notice to the consortium of Jet Airways' lenders, directing them to file their reply within a period of two weeks. The Tribunal has further directed to list the matter on August 21, 2019, for the next hearing.   Earlier, the National Company Law Tribunal (NCLT), Mumbai, had rejected the appeal of Dutch insolvency administrator to recognize their proceedings. Continue reading     CA Vishal Sharma join as a new partner of AAA Insolvency Professionals LLP  FCA, Licentiate ICSI  Insolvency Professional  Regn.No .IBBI/IPA-001/IP-P00264/2017-18/10508  Designated partner, Kolkata Total-experience: 23 Years   Core Competence & Industry specific experience Banking – Concurrent Audit, Statutory Audit, Accounts Audit and Taxation, Direct and Indirect Taxation, Audit under SOX. Industry Sectors: Plywood, Power Transmission, Jute and Real Estate Industries. Experience in restructuring & handling of Stressed Assets Loan applications for clients including applications for rescheduling and restructuring of loans. Working Capital management for clients under financial stress. Continue reading CA Suresh Kannan joins as a new partner of AAA Insolvency Professionals LLP   B.Com. CWA & FCA Insolvency Professional Regn.No IBBI/IPA-001/IP-P01434/2018-2019/12277  Designated Partner, Bengaluru Total-experience: 21 +Years Core Competence & Industry specific experience   Played a stellar role in setting up more than 100 companies including Foreign Companies and managing their finance function Industry Sectors: Construction, Textile, Manufacturing, Embedded technology, Hospitality services, IT/ITES, Project Management, Real Estate, Stone Industry, Trading, Translation Services and Engineering Services.   Experience under IBC   Have been handling 5-6 companies under CIRP as a consultant for Corporate Debtors. Partner of AAA Insolvency Professionals LLP, largest IPE in the country and assisting other partners in CIRP and Liquidation cases. AAAIP is presently working on more than 46 live CIRP cases. PS: If you like our weekly newsletter, Please forward this to your Friends and Colleagues!! 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