The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the Insolvency and Bankruptcy Code (IBC).
Speaking at an event organised by industry body Assocham, IBBI Executive Director Santosh Kumar Shukla said it is a joint effort of all the stakeholders and not only insolvency professionals for the revival of compa…
Read the full article at: https://www.outlookindia.com/newsscroll/insolvency-resolution-plans-should-look-to-maximise-biz-value-rather-than-just-recover-dues/2149737
THE economic fallout of the Covid-19 pandemic has led to the establishment of a number of debt-relief and financing options for cash-strapped countries. But just how many emerging markets have benefitted from these initiatives?
Debt was already a big issue before the health crisis. According to the International Monetary Fund, 36 of the 70 markets classified by the fund as being low income were either at high risk of, or already in, debt distress as of February 2020, prior to the declaration of a global pandemic.
The pandemic exacerbated these concerns, as governments raised debt to fund their national responses to the dual health and economic crises.
As more developing nations sought to restructure their debt, G20 governments, along w…
Read the full article at: https://www.theborneopost.com/2021/08/28/who-are-the-biggest-winners-in-the-g20s-debt-relief-programme/
A college graduate calls their family on video to celebrate
Kemal Yildirim | Getty Images
Earlier in August, the U.S. Education Department under President Joe Biden announced it would cancel another $1.1 billion in student loan debt for about 115,000 borrowers who attended ITT Technical Institute, a now-defunct school.
This latest round of forgiveness brings the administration’s total to about $9.5 billion erased for about 563,000 borrowers, according to the Education Department.
While a win for many, it isn’t a sign that broad-based student debt forgiveness will necessarily come anytime soon, experts say.
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Read the full article at: https://www.cnbc.com/2021/08/28/biden-has-canceled-9-point-5-billion-in-student-loan-debt-yet-forgiveness-for-all-isnt-necessarily-coming-.html
The focus of an insolvency resolution plan should be to maximise the value of the business concerned and not just to recover the dues or liquidate the company, an IBBI official said on Saturday.The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the Insolvency and Bankruptcy Code (IBC).
Speaking at an event organised by industry body Assocham, IBBI Executive Director Santosh Kumar Shukla said it is a joint effort of all the stakeholders and not only insolvency professionals for the revival of companies under financial stress.
“While we need to give full credit to the role and the responsibility of the insolvency professionals, while working out a resolution package, the other stakeholders like the commi…
Read the full article at: https://economictimes.indiatimes.com/news/economy/policy/insolvency-resolution-plans-should-look-to-maximise-biz-value-rather-than-just-recover-dues-ibbi-official/articleshow/85718484.cms
The past few weeks have seen debates surrounding the Parliamentary Standing Committees call for an overhaul of the Insolvency and Bankruptcy Code owing to low recovery rates and delays in resolution process.
Citing a high rate of pendency and incidences of liquidation, the report laments colossal haircuts taken by creditors. Amongst other things, the report has suggested that Regulation 32(e) of the Liquidation Regulations, which provides for sale of the corporate debtor as a going concern, be deleted.
Placing reliance upon a decision which is pending adjudication before the National Company Law Appellate Tribunal, the report states that Regulation 32(e) falls foul of the provisions of the Code since liquidation mandates dissolution but…
Read the full article at: https://thewire.in/business/the-liquidation-of-a-company-as-a-going-concern
It also suggested that a professional code of conduct for the CoC be put in place, which would define and circumscribe their decisions, as these have larger implications for the efficacy of the Code.
The erosion of value of stressed firms before the initiation of the corporate insolvency resolution process (CIRP) is a matter of concern, corporate affairs secretary Rajesh Verma said on Friday.
Still, creditors have been able to recover more than 180% of the liquidation value of the corporate debtors where resolution has taken place, Verma said at a CII event. In fact, more than 30% of the firms that have been rescued under the Insolvency and Bankruptcy Code (IBC) were not even going concerns, the secretary said, as he called the five-ye…
Read the full article at: https://www.financialexpress.com/industry/pre-cirp-asset-value-erosion-a-matter-of-concern-corporate-affairs-secretary-rajesh-verma/2319275/
Mercer County Community College is putting federal money directly into the hands of its students by way of reducing and eliminating debt. And its not waiting around to do so.
The school announced that, over the past 16 months, it has forgiven nearly $5 million in qualified balances such as tuition, fees and other costs to students enrolled during the pandemic.
At a time when the disbursement of so much federal aid has been slow, MCCC officials said they were determined to help those in need as quickly as possible. The college received an initial round of $2 million in funding from the CARES Act and went right to work.
CCMs goal: Give away $10M
The County College of Morris, like nearly all of the states county colleges, also has been …
Read the full article at: https://www.roi-nj.com/2021/08/27/education/debt-relief-mercer-county-cc-has-been-model-at-getting-federal-relief-funds-to-students/
The Ministry of Corporate Affairs (MCA) is working to issue a code of conduct for creditors under the Insolvency and Bankruptcy Code (IBC), said MCA Secretary Rajesh Verma on Friday.
This comes a month after a Parliamentary panel flagged the disproportionately large and unsustainable haircuts taken by the financial creditors over the years. In some insolvency resolution processes, the haircuts taken by creditors were more than 90 per cent.
The Insolvency and Bankruptcy Board of India (IBBI) is collaborating with the Indian Banks Association, the Reserve bank of India and the Department of Financial Services for a code of conduct, Verma said while addressing a Confederation of Indian Industry Conference on 5 years of IBC.
Industry…
Read the full article at: https://www.business-standard.com/article/economy-policy/mca-is-working-to-issue-code-of-conduct-for-creditors-under-ibc-verma-121082800015_1.html
At Les Ambassadeurs Club, Yu Songbo acquired gambling chips with cheques that then bounced
L
ondon casino Les Ambassadeurs Club in Park Lane, Mayfair is taking Yu Songbo, a multi-millionaire property developer, to court after he cashed cheques for gambling chips which then bounced, to the High Court to recover the money he owes.
The Chinese mans family had an estimated fortune of $1.3 billion when he became a casino member in 2014. He cashed cheques for $26 billion between April 27 and May 1 in 2018. However, the court said all the cheques were subsequently dishonored, as reported by Daily Mail.
A judge ruled he now owes the casino $13.7 million, including legal costs and interests, after an application for global freezing order was re…
Read the full article at: https://www.yogonet.com/international/noticias/2021/08/27/59014-london-casino-takes-multi-millionaire-to-court-over-137m-debt
If you’re having trouble with credit card debt, consolidation could be the way out.
Since credit cards tend to have high interest rates, getting rid of credit card debt can be expensive. A popular way to pay it off more efficiently is debt consolidation.
Here are the two most common ways to consolidate credit card debt:
- Apply for a balance transfer card. The best balance transfer cards offer an introductory 0% APR on balances you transfer over. These cards typically require a good credit score for approval.
- Apply for a debt consolidation loan. This is a loan intended for paying off other debt. Although you can get a lower interest rate with good credit, there are debt consolidation loans for consumers in every credit score range.
De…
Read the full article at: https://www.fool.com/the-ascent/credit-cards/articles/3-signs-you-should-consolidate-your-credit-card-debt/
The corporate affairs ministry is working with the finance ministry, Reserve Bank of India and the Indian Banks’ Association (IBA) on the issue of the conduct of the committee of creditors under the insolvency resolution process, a senior official said on Friday. The role of Committee of Creditors (CoC) is crucial in deciding a resolution plan under the Insolvency and Bankruptcy Code (IBC), which provides for a market-linked framework for resolving stressed assets.
The discussions on the issue of the conduct of CoC in the context of the insolvency resolution process assumes significance amid recent instances of creditors taking steep haircuts on their exposure under resolution plans.
“We are working with IBA, RBI and Department of Financi…
Read the full article at: https://economictimes.indiatimes.com/news/economy/policy/ibc-corporate-affairs-ministry-working-with-finance-ministry-rbi-on-issue-of-committee-of-creditors-conduct/articleshow/85686516.cms
With the implementation of the insolvency law, the days of feudalism of corporate debtors where they had considered it their divine right to be in control are gone, Chief Economic Adviser K V Subramanian said on Friday.
The Insolvency and Bankruptcy Code (IBC), which came into force in 2016, provides for a market-linked and time-bound resolution of stressed assets. Once a stressed company is admitted for resolution under the IBC, the Committee of Creditors (CoC) will be in charge and the company’s affairs are managed by a resolution professional. If the resolution is not successful, then the company goes into liquidation.
“Before IBC, there used to be feudalism where the corporate debtor took it to be his or her divine right to be in cont…
Read the full article at: https://economictimes.indiatimes.com/news/company/corporate-trends/feudalism-of-corporate-debtors-gone-after-ibc-implementation-cea-k-v-subramanian/articleshow/85682294.cms