Not in default, but already affected | Expert Views

  These are valid concerns regarding the functioning of the IBC once a firm enters insolvency proceedings. However, these very features determine what lenders expect to recover upon default and, consequently, shape the terms on which they extend credit before any default occurs. Thus, evaluating the IBC primarily through resolution outcomes provides only a partial…

Profitable Companies Can Face Insolvency Over Loan Default; Accounting Disputes Can’t Stall Admission: Supreme Court

The Supreme Court has held that a company’s profitability cannot shield it from insolvency proceedings once a financial debt and a default exceeding the statutory threshold are established.  The Bench of Justices Dipankar Datta and Augustine George Masih has clarified that admission of a financial creditor’s application under Section 7 of the Insolvency and Bankruptcy…

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Proposed ARC Debt Assignment Doesn’t Bar Insolvency Proceedings Against Personal Guarantor: NCLT Delhi

The Principal Bench of the National Company Law Tribunal (NCLT) at Delhi on 12 October held that a financial creditor’s proposal to assign its debt to an Asset Reconstruction Company (ARC) does not prevent it from initiating insolvency proceedings against a personal guarantor. A Bench comprising President Justice Anupinder Singh Grewal and Technical Member Ravindra…

NCLT Bengaluru Terminates Alpine Wineries’ Liquidation After Settlement Of ₹49 Crore Debt

The National Company Law Tribunal (NCLT), Bengaluru, on 12 October permitted termination of the liquidation proceedings against Alpine Wineries Private Limited after its financial creditors’ dues were settled under one-time settlement agreements. A Bench of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada allowed an application filed by Raghavendra Gowda, erstwhile director and…