Insolvency Guardian Media Centre
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The difference between bankruptcy and insolvency can be confusing. However, its important to understand the distinction, especially if you own or run a company.
Keep reading to take a look at insolvency and explore how it differs from bankruptcy.
What Is Insolvency?
Insolvency refers to an individual or companys inability to pay debts when they fall due. In an insolvent situation, the party assets are insufficient to discharge outstanding monetary obligations at the creditors demand.
In other words, an individual is considered insolvent when their current assets do not exceed their total liabilities and obligations.
For instance, lets say a company owes $1 million but only has…
Read the full article at: https://www.gobankingrates.com/money/business/what-is-insolvency/
By Ed Frankl
Thyssenkrupp AG said Thursday that it will sell its Carbon Components business to Action Composities GmbH as it continues to slims down its portfolio as part of a corporate restructuring.
Carbon Components, which has around 100 employees, develops and produces high-performance braided wheels for sports cars, motorcycles and mountain bikes, among other things, the German steel maker said.
Thyssenkrupp assigned Carbon Components to its Multi Tracks segment last year, before deciding to sell the business in May 2021. With the sale, “the initiated discontinuation of Thyssenkrupp Carbon Components can be averted,” the company said.
“This represents another important success for the [company] in focusing its portfolio as part o…
Read the full article at: https://www.marketwatch.com/story/thyssenkrupp-sells-carbon-components-business-271629359444
If Star were eligible to buy any of Crowns casinos, this is an option that its chief executive, Matt Bekier, says would also be looked at but it would depend on the price of Crowns pieces he said.
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But to capitalise on potential opportunities, Star needs the financial readies.
And thats where the restructuring plans come in.
It has already begun the process of splitting itself in two – to create a property company and an operating company – a structure dubbed in finance circles as opco/propco.
Star is already well advanced with the first stage of this process, having announced on Thursday that it is already courting expressions of interest for those wishing to buy up to half of its Sydney integrated casino complex. The value …
Read the full article at: https://www.smh.com.au/business/companies/star-casino-positions-itself-to-pick-the-bones-from-the-crown-carcass-20210819-p58k7z.html
The recent amendments by the Insolvency and Bankruptcy Board of India (IBBI) via the IBBI (Corporate Insolvency Resolution Process or CIRP) (second amendment) Regulations, 2021, are welcome steps towards bringing in greater transparency and accountability in conducting resolution processes under the Insolvency and Bankruptcy Code (IBC), 2016.
Once the CIRP is initiated, an insolvency professional (IP) is appointed. The IP steps in the shoes of the board of directors and management to take charge of the corporate debtor. The code details the various duties of the IP with the objective of preserving the value of the debtor. The objective of the CIRP is to promote entrepreneurship and give fresh life to an asset, besides maximising its va…
Read the full article at: https://www.business-standard.com/article/economy-policy/ibc-reform-helps-insolvency-professional-assess-avoidance-transactions-121081900337_1.html
Member Article
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Corporate insolvencies fell by 9.3% to 1,094 in July 2021 compared to Junes figure of 1,206, and increased by 13.4% compared to July 2020s figure of 741
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Personal insolvencies fell by 7.8% to 9,079 in July 2021 compared to Junes figure of 9,848, and were 23.8% higher than July 2020s figure of 7,335.
Eleanor Temple, chair of insolvency and restructuring trade body R3 in Yorkshire and a barrister at Kings Chambers in Leeds, responds to Tuesdays publication of the July 2021 corporate and individual insolvency statistics for England and Wales: The month on-month fall in corporate insolvencies was as a result of a drop in Compulsory Liquidations, Creditors Voluntary Liquidations, Administrations and Company Voluntary Arr…
Read the full article at: https://bdaily.co.uk/articles/2021/08/19/july-2021-monthly-insolvency-statistics-r3-response
The Insolvency and Bankruptcy Code, 2016 (IBC) is a noble law because it relieves stress, be it of a company, a limited liability partnership, a proprietorship or partnership firm or an individual. However, the discussion here is limited to companies as provisions of the IBC relating to individuals, except in relation to personal guarantors to corporate debtors, are yet to come into force. It is based on generalisations though there are notable exceptions.
For reasons sometimes under the control of a company and at times beyond its control, it may experience stress, that is, is unable to repay the debt in time implying that it has assets less than claims against it. Elementary economics tells us that when a company has inadequate assets…
Read the full article at: https://indianexpress.com/article/opinion/columns/getting-the-perfect-haircut-from-the-ibc-7460418/
Retail business owners and directors are being urged to seek help immediately if theyre struggling to pay their tax because of pandemic-driven cash flow issues.
Speaking up now could ensure retail owners have more options to save their business or restructure, according to national business rescue and insolvency firm, Jirsch Sutherland.
Inconsistent cash flow has a huge impact on when and how a business can meet its tax obligations, Jirsch Sutherland partner, Andrew Spring said.
The lockdowns and restrictions are causing many retail businesses across the country to struggle, and rising tax debts serve as a reminder to seek help. If youre behind in your tax payments, its crucial to act quickly. While the ATO has been sympathetic about u…
Read the full article at: https://www.applianceretailer.com.au/insolvency-firm-urges-struggling-retailers-to-act-now/
At the end of July, a one-time Indian alcohol tycoon named Vijay Mallya was declared bankrupt by a British court. This ruling will allow a consortium of 17 Indian banks to go after Vijay’s global assets and could potentially mean Vijay will be extradited back to his home country in the very near future.
Vijay has experienced a stunning fall from grace in the last few years. He used to be known as the “King of good times” thanks to his lavish lifestyle complete with fleet of fast cars, mansions, yachts, private jets and flamboyant parties. He’s now a bankrupt former billionaire fugitive.
Leon Neal/Getty Images
Early Life and Career Beginnings
Vijay Mallya was born on December 18, 1955. His father Vittal Mallya was the first Indian C…
Read the full article at: https://www.celebritynetworth.com/articles/billionaire-news/how-an-epic-life-of-extravagant-partying-turned-vijay-mallya-into-a-bankrupt-fugitive-billionaire/
IFCI, Sidbi and Bank of Maharashtra have also filed an appeal in the NCLAT against VIL’s debt resolution, saying recovery is miniscule and it makes no sense to accept a 96% haircut
Topics
Videocon Industries|NCLT
Dev Chatterjee | Mumbai
Last Updated at August 18, 2021 17:17 IST
Delhi-based lender IFCI Ltd has moved the National Company Law Tribunal (NCLT) opposing the other lenders’ plans to sell Videocon Industries oil assets and consumer durable business separately.
IFCI, which is one of the lenders of Videocon Industries, argues that while the debt of oil assets has been treated as Videocon Industries consolidated debt, the value of oil assets is not included in VILs resolution, thus impacting its recovery. IFCI, Sidbi and …
Read the full article at: https://www.business-standard.com/article/companies/ifci-moves-nclt-against-videocon-debt-resolution-wants-oil-assets-included-121081800997_1.html
Mumbai: The National Company Law Tribunal (NCLT), Mumbai bench recently initiated corporate insolvency resolution process (CIRP) against Vijay Group Realty LLP for failing to pay a debt of around Rs one crore to a Thane-based financial creditor.
The bench of H V Subba Rao, judicial member and Chandra Bhan Singh, technical member, allowed the petition filed by Bhanu Navin Nisar seeking to initiate CIRP against Vijay Group Realty LLP, alleging that the debtor committed default in making payment of Rs One crore along with an interest of 18 per cent to her. She claimed that the payments have been outstanding since August 2019.
The plea claimed that Nisar had given a loan to the company, having its office at Churchgate, in O…
Read the full article at: https://www.freepressjournal.in/mumbai/fpj-legal-nclt-oks-corporate-insolvency-resolution-process-against-south-mumbai-company-for-failing-to-repay-rs-1-crore-debt
Released
17 August 2021
Next release
17 September 2021
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Statistical enquiries
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1. Main Messages for England and Wales
The number of registered company insolvencies in July 2021 was 1,094:
- 13% higher than the number registered in the same month in the previous year (965 in July 2020), but
- 24% lower than the number registered two years previously (pre-pandemic; 1,442 in July 2019).
In July 2021 there were 1,007 Creditors Voluntary Liquidations (CVLs), which was similar to pre-pandemic levels. The overall reduction in company insolvencies compared to July 2019 was driven mostly by the lower num…
Read the full article at: https://www.gov.uk/government/statistics/monthly-insolvency-statistics-july-2021/commentary-monthly-insolvency-statistics-july-2021
The judge’s tone was brisk and business-like at aZoom courtroom hearing Tuesday to lay out a path for current,former and retired Laurentian employeesclaiming compensation from insolvent Laurentian University.
The new policy provides a formula forthe claims process, but doesn’t mandate a payout percentage of the claim.
The institution declared itself insolvent Feb. 1, with its president Robert Hachsaying it was entering creditor protectionbecause it didn’t have the financial means to cover the payroll that month. Under the Companies’ Creditors Arrangement Act, the university was allowed to operate while dealing with its financial situation.
Since then, there have been drastic cuts to programs, staff and faculty.
In a letter to the …
Read the full article at: https://www.cbc.ca/news/canada/sudbury/claims-process-methodology-laurentian-university-insolvency-1.6143882