Insolvency Guardian Media Centre
On May 16, 2023, the NCLT had directed the initiation of a Corporate Insolvency Resolution Process (CIRP) against Tulip Hotels over a plea filed by Yes Bank, claiming a default of Rs 900 crore for two corporate guarantees issued by it.
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Data breaches and ransomware attacks in the US are increasing companies’ risk of financial losses, in many cases dragging them into bankruptcy or putting them out of business altogether.
Data breaches cost companies across the world on average about $4.9 million, and nearly double that amount in the US, according to a 2024 study by IBM. Costs can differ based on a number of factors, including regulatory compliance requirements, sensitivity or complexity of the data involved, and subsequent litigation.
The International Monetary Fund warned last year that cyberattacks have more than doubled since the onset of the pandemic, increasing the risk of “extreme losses” for companies that could cause funding problems “and even jeopardize…
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Data breaches and ransomware attacks in the US are increasing companies’ risk of financial losses, in many cases dragging them into bankruptcy or putting them out of business altogether.
Data breaches cost companies across the world on average about $4.9 million, and nearly double that amount in the US, according to a 2024 study by IBM. Costs can differ based on a number of factors, including regulatory compliance requirements, sensitivity or complexity of the data involved, and subsequent litigation.
The International Monetary Fund warned last year that cyberattacks have more than doubled since the onset of the pandemic, increasing the risk of “extreme losses” for companies that could cause funding problems “and even jeopardize…
Read the original article here
A builder who used company funds to pay for his high-performance car and stole almost £90,000 in plant machinery has been given a suspended sentence.
Vasile Hrusca withdrew more than £67,000 from his own failing company in 2019 to pay off the remaining balance on a hire purchase agreement for an Audi RS6 which he had bought the previous year for just under £75,000.
The 40-year-old also sold seven diggers and other plant machinery which were still subject to hire purchase agreements with two separate banks to fund gambling.
Hrusca, of Ferndown, Hornchurch, was sentenced to 18 months in prison, suspended for two years, when he appeared at Snaresbrook Crown Court on Friday…
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Despite the drop year on year, the number of insolvencies was far higher than most of the last decade, and remains at levels last seen during the 2008 financial crisis.
The figures also revealed that compulsory liquidations – where courts order firms to stop trading because they cannot pay their debts – jumped 14% to 3,230 in 2024 after a year-end surge.
The number of monthly compulsory liquidations soared by 53% year on year during December.
Administrations, an accounting process used when especially large companies hit the wall, also rose – up 2% over 2024 – and were 5% higher year on year in December.
David Hudson, restructuring advisory partner at business consultancy FRP, said it is “notable” that administrations have…
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Tulip Hotels is heading towards liquidation after the National Company Law Tribunal (NCLT) directed this course of action. The decision follows the failure to secure any bidders during the insolvency resolution procedure.
Yes Bank’s plea highlighted that two corporate guarantees worth Rs 900 crore, provided by Tulip Hotels for loans to Cox & Kings and EzeeGo One Travel and Tours Ltd., had defaulted. Hence, the financial crisis culminated in a Corporate Insolvency Resolution Process (CIRP) for Tulip Hotels on May 16, 2023.
No resolution plan surfaced during the CIRP’s 180-day limit, leading the Committee of Creditors (CoC) to reject an extension. J C Flowers Asset Reconstruction Pvt Ltd, representing a 70.83% voting share in CoC,…
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The tribunal held that an appeal under section 61 of the IBC cannot be entertained after the dissolution of the corporate debtor under section 54 of the IB code
In a recent ruling, the New Delhi bench of the National Company Law Appellate Tribunal (NCLAT) has held that an appeal under section 61 of the IBC cannot be entertained after the dissolution of the corporate debtor under section 54 of the Insolvency Bankruptcy code(IBC), 2016.
The appellant, New India Color Company Ltd., contested the National Company Law Tribunal’s (the “Tribunal”) order dated 14.09.2022, which dismissed the appellant’s interlocutory application filed in Company Petition No. (IB) – 908/ND/2020 under Section 60(5) r/w Section 73 of the Insolvency &…
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The Tribunal held that the CoC, in its commercial wisdom, had not accepted the resolution plan and had directed the liquidation of the Corporate Debtor
The National Company Law Appellate Tribunal ( NCLAT ) New Delhi has held that the commercial wisdom of the Committee of Creditors ( CoC ) in rejecting a resolution plan and opting for liquidation is “non-justiciable”.
According to Section 164(2) of the Companies Act, Fortune Chemicals Limited, the Appellant-Director, was disqualified, making him ineligible to apply for a resolution under Sections 29A(e) and 29A(j) of the Insolvency & Bankruptcy Code, 2016 ( IBC ). The Tribunal ruled that it was not possible to overrule the CoC’s decision to reject the Appellant’s Resolution Plan….
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Inflation may be easing but Australians are still acutely feeling the effects of higher prices, with a substantial increase in people seeking financial help.
More than 169,000 people sought help from the National Debt Helpline in 2024 – a 12 per cent increase on the previous year.
The increase showed how difficult it was for many Australians to get by at the moment, said Peter Gartlan, co-CEO of Financial Counselling Australia, which co-ordinates the helpline service.
“Cost-of-living pressures are mounting and having a significant impact on the financial well-being of many thousands of Australians,” he said.
While people contacted the helpline for a variety of reasons, the main ones were: housing stress, including mortgage, rent,…
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While millions of Americans owe the IRS money in back taxes, some unfortunately owe a lot more than others.
Take this 33-year-old California man, for example. His dire situation, in which he owes about $170,000 in tax debt, was the subject of a Reddit post titled “Large tax and credit card debt. Debt relief or bankruptcy?”
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As the Reddit post explains, this California man had the opportunity to buy shares of a company he used to work at and decided to purchase “a ton” of shares just before leaving the company. But as our unfortunate investor explains, he didn’t quite understand the tax…
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The long-term impact of debt relief for indigent defendants in a misdemeanor court pnas.org
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