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Reserve Bank of India Deputy Governor M Rajeshwar Rao on Saturday pitched for an enforceable code of conduct for the Committee of Creditors under the insolvency resolution process.
While emphasising that the Insolvency and Bankruptcy Code, which was introduced in 2016, has gained significant traction as a recovery and resolution mechanism, Rao also said significant improvements are needed with respect to the area of the Committee of Creditors .
The Committee of Creditors has a key role in implementing the corporate insolvency resolution process under the IBC.
At a conference in the national capital, Rao said there have been instances where the Committee of Creditors’s performance has been found lacking in several aspects.
True Value, a 75-year old hardware store brand, has filed for bankruptcy and is selling substantially all of its operations to a rival, the company announced Monday.
In a press release, True Value said it will continue day-to-day operations of selling hardware and other homeware tools to its 4,500 independently operated locations during the Chapter 11 process, which includes a $153 million stalking horse bid from rival company Do it Best.
True Value said its stores will remain open, because they are not part of the bankruptcy proceedings.
Motions brought by boom-time developer Seán Dunne in an effort to dislodge officials overseeing his bankruptcy have been dismissed by the High Court.
Mr Justice Liam Kennedy said Mr Dunne (aged 70) failed to bring new proceedings and instead took a procedurally incorrect route in seeking to challenge the validity of two officials’ appointments within the original bankruptcy case.
Mr Dunne was declared bankrupt in 2013, owing hundreds of millions of euro to the banks.
He recently issued motions alleging, among other claims, that the legislation used to appoint official assignees to his bankruptcy is unconstitutional.
A preliminary objection was raised by former official assignee Chris Lehane, his successor Ian Larkin, and the head of the…
New Delhi, Dec 7 (PTI) Reserve Bank Deputy Governor M Rajeshwar Rao on Saturday pitched for an enforceable code of conduct for the Committee of Creditors (CoC) under the insolvency resolution process.
While emphasising that the Insolvency and Bankruptcy Code (IBC), which was introduced in 2016, has gained significant traction as a recovery and resolution mechanism, Rao also said significant improvements are needed with respect to the area of CoC.
CoC has a key role in implementing the corporate insolvency resolution process under the IBC.
At a conference in the national capital, Rao said there have been instances where the CoC’s performance has been found lacking in several aspects.
“This includes disproportionate prioritisation of…
It was evident that the appellant could not have adjusted the security deposit given by the corporate debtor towards its pre-CIRP dues after the admission of the corporate debtor into the insolvency
The Chennai bench of the National Company Law Appellate Tribunal ( NCLAT ) has held that pre-CIRP dues cannot be recovered once the corporate debtor is admitted into insolvency due to moratorium under section 14 of the code. The Central Transmission Utility of India Limited challenged an order passed by NCLT Hyderabad. KSK Mahanadi Power Company…
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Directorate of Enforcement (ED), Delhi Zonal Office, conducted search operations on 04 December 2024 at 18 locations in Delhi, NCR and Mumbai belonging to Shilpi Cable Technologies Limited (SCTL), the then promoters/ directors Manish Goel, Vishal Goel and other companies related to them.
ED initiated investigations on the basis of FIR registered by CBI, New Delhi, against Shilpi Cable and its promoters for cheating Banks. As per the FIR, Shilpi Cable cheated banks to the tune of Rs 989 Crore. The company was engaged in the business of design and manufacturing of wires and cables in automobile and telecom segments. The FIR alleged that the said entity took loans from banks for business purposes and diverted the bank funds…
The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Barun Mitra (Technical Member) has held that section 43 of the code can be attracted only when the transaction in question is made by the corporate debtor and not when it is made by the third party in pursuance of a statutory demand.
Brief Facts
The corporate debtor was admitted into the insolvency on June 21, 2019. When the moratorium was in operation, the Madhya Pradesh Commercial Tax Department issued a notice on July 3, 2019 in which VE Commercial Vehicles Ltd, was directed to pay ₹17,12,094 as VAT due on behalf of the corporate debtor.
Thereafter, the Resolution Professional filed an application under sections 43 and 60(5) of the code in…
The National Company Law Appellate Tribunal upheld the order of the National Company Law Tribunal admitting Jaiprakash Associates Limited to the Corporate Insolvency Resolution Process.
The National Company Law Appellate Tribunal found that Jaiprakash Associates Limited had made a One Time Settlement offer and paid ₹ 200 Crores as an upfront amount.
The appeals filed by a Suspended Director of Jaiprakash Associates Limited challenging the Corporate Insolvency Resolution Process were rejected by the National Company Law Appellate Tribunal.
Eegee’s declared Chapter 11 bankruptcy on Friday. | Photo: Shutterstock.
Eegee’s, a 53-year-old chain out of Tucson, Arizona, declared Chapter 11 bankruptcy on Friday after closing a handful of stores in the region.
The fast-food sandwich concept listed both assets and liabilities of between $10 million and $50 million and says that it has between 100 and 199 creditors.
Local reports said that the company had closed five locations this week, leaving the brand with 25 restaurants. All the chain’s restaurants are in Arizona and are company operated. The company generated $27.9 million in system sales last year, according to data from Restaurant Business sister company Technomic. That was down 4.8% from the year before.
Billionaire tech CEO Elon Musk has in a post on social media platform X (formerly known as Twitter), expressed worry that the United States will go “bankrupt”.
“Overspending must stop or America will go bankrupt,” he wrote early on March 13. Musk was responding to a post by X user @WallStreetSilv who warned that over time 100 percent of US taxpayer monies would be used to pay interest on national debt.
“This is an amazing number to watch in the next few years. Individual income taxes are about 1/2 of the govt revenue. For February, the US govt collected $120 billion from individual income taxes. They had to spend $76 billion in February to pay interest on the national debt. We are not that far off from a day when 100% of individual income…
Chris Elle Dove, once bankrupt, is set to retire early with over $1.5 million net worth.
She transitioned from earning $50,000 a year as a professor to investing full-time.
Her strategy includes living minimally, investing in real estate, and keeping spending low.
Chris Elle Dove, 52, declared bankruptcy at age 29 in 2001 and survived off government benefits and side hustles to provide for her two kids. She had recently lost her husband and was struggling to be a good mom while finding more stable work.
Two decades later, she and her second husband have a total net worth of over $1.5 million and are set to retire early in their 50s.
After years of earning between $50,000 and $60,000 as a professor, Dove…
