Insolvency Guardian Media Centre
The threat of invoking IBC is itself enough to prevent defaults and to reinstate the sanctity of debt contract.ByK Srinivasa Rao
The judgment of the Supreme Court upholding the legal sanctity of Insolvency and Bankruptcy Code (IBC) can bring a tectonic shift in the loan repayment culture. It asserts that the defaulters cannot bid for the assets of the insolvent company in terms of amended section 29 (A) to regain control while lenders are forced to take a haircut. It also tames the attitude of Committee of Creditors (CoC) and provides a clear and firm guidance that its decisions cannot be arbitrary, as was seen in the recent stance in the Essar Steel case. It asserts that CoC is not the ultimate link in the value-chain of IBC. It also re…
Read the full article at: https://www.financialexpress.com/opinion/sc-upholds-ibc-spirit-now-make-it-resolution-centric-instead-of-liquidation-centric/1458786/
The number of companies that entered insolvency rose 10 per cent in 2018, the highest level since 2014, according to official insolvency statistics.
Data, published by the UK government today (January 29), revealed 16,090 companies entered insolvency in 2018 and 3,949 of those took place in the fourth quarter of 2018.
When compared with figures for the third quarter of the year, insolvencies rose by 9.3 per cent in the final three months of 2018.
The construction industry was the worst affected, with 2,954 company insolvencies for2018.
Financial and insurance sectors, however, had less than 500 insolvencies during 2018.
Brian Johnson, business recovery and insolvency partner at H W Fisher & Company, said: “The reality of Brexit, and the econo…
Read the full article at: https://www.ftadviser.com/investments/2019/01/29/insolvencies-rise-as-brexit-takes-its-toll/
SINGAPORE, Jan. 29, 2019 (GLOBE NEWSWIRE) — ASLAN Pharmaceuticals (Nasdaq:ASLN, TPEx:6497), a clinical-stage oncology-focused biopharmaceutical company developing novel therapeutics for global markets, today announced a strategic corporate restructuring to focus its resources on its lead clinical programs: varlitinib in biliary tract cancer (BTC), ASLAN003 in acute myeloid leukaemia (AML) and ASLAN004 in atopic dermatitis.
ASLAN will focus its resources on the late-stage development of varlitinib as a potential novel treatment for first- and second-line BTC. Enrolment in a global pivotal study of varlitinib in second-line BTC, the TreeTopp (TREatmEnT OPPortunity) study, was completed ahead of schedule in December 2018 and topline dat…
Read the full article at: https://globenewswire.com/news-release/2019/01/29/1707283/0/en/ASLAN-Pharmaceuticals-Announces-Strategic-Prioritisation-of-Clinical-Development-Programs-and-Corporate-Restructuring.html
// Gerry Weber begins insolvency proceedings after financing talks breaks down
// 580 staff at risk
// Retailer assures it is safeguarded until at least 2020
Gerry Weber has applied for the court order of preliminary insolvency proceedings under self-administration after talks with its finance partners broke down.
The requested preliminary insolvency exclusively applies to the parent company Gerry Weber International AG, which employs around 580 staff and puts their jobs at risk.
The self-administration aspect of the proceedings means Gerry Webers managing board will remain in office with all powers and responsibilities, pending the courts approval.
Gerry Webers subsidiaries, including Hallhuber and Samoon, are exclud…
Read the full article at: https://www.retailgazette.co.uk/blog/2019/01/gerry-weber-begins-insolvency-proceedings-save-business/
The National Company Law Tribunal on Tuesday rejected the settlement offer put forth by the promoters of Essar Steel Limited, saying the proposal violated a section of the Insolvency and Bankruptcy Code, Reuters reported.
The Ruia family made the offer on the day the Committee of Creditors approved ArcelorMittals resolution plan for the insolvent Essar Steel. The companys debts amount to around Rs 49,000 crore. It is one of the first 12 companies referred by the Reserve Bank of India to be listed under the Insolvency and Bankruptcy Code in June 2017.
In October last year, steel manufacturing company ArcelorMittal said it had won a bid to acquire Essar Steel for more than Rs 42,000 crore. ArcelorMittal is owned by NRI billionaire…
Read the full article at: https://scroll.in/latest/911305/national-company-law-tribunal-rejects-essar-steel-promoters-settlement-offer
In a notable order passed recently, the Supreme Court permitted the withdrawal of Corporate Insolvency Resolution Process(CIRP) even after the Resolution Professional issued invitation for expression of interest from resolution applicants to submit resolution plans under Regulation 36A of CIRP Regulations 2016.
As per Regulation 30A, withdrawal of insolvency application has to be sought before the issue of invitation for expression of interest under Regulation 36A.
This case Brilliant Alloys Pvt Ltd v S Rajagopal, arose out of proceedings in NCLT Chennai bench. In the CIRP before Chennai bench, the corporate debtor, financial creditor and the operational creditor entered into a settlement. Based on the settlement, the corporate debtor subm…
Read the full article at: https://www.livelaw.in/top-stories/ibc-insolvency-proceedings-withdrawn-after-invitation-resolution-plans-regulation-36a-142499
MUMBAI: While the number of insolvency cases are expected to pile up over the next few quarters, timely conclusion of cases within the law mandated 180-270 days can free up as much as Rs 67,000 crore to the system, says a report.
Since the bankruptcy law came into being from May 2016, close to 3,000 companies have been sent to various NCLTs for resolutions of which only 586 have been closed so far while 63 have been withdrawn after the law was amended last year under which Section 12A has been inserted into the original law.
According Icra, as of December 2018, as many as 898 corporate insolvency cases are awaiting a resolution as against 768 cases as in September 2018. Up to December 2018, only 79 cases have yielded a resolution while 3…
Read the full article at: https://economictimes.indiatimes.com/news/economy/finance/timely-nclt-resolutions-can-release-rs-67000-crore-to-lenders/articleshow/67743053.cms
Verizon Communications Inc.s core wireless business continues to add customers in the crowded U.S. market, but the companys quarterly profit was hit by charges related to a restructuring in its struggling media business.
The carrier previously said it added a net 653,000 new postpaid phone connections during the final quarter of 2018. That pool of new phone connections was an increase from the net 295,000 it added in the third quarter and a 50% increase from the 431,000 additions in the final quarter of 2017.
…
Read the full article at: https://www.wsj.com/articles/verizons-profit-stung-by-oath-restructuring-11548766813
Despite the Australian bankruptcy rate hitting a 23-year low, individuals and businesses must still be thorough and ensure that they know who they are doing business with.
The legal technology provider and Australian Financial Security Authority (AFSA) broker was reacting to data released by AFSA, which revealed that bankruptcies declined 6% on the year to 3,788 in the ending quarter of 2018.
The decline represents the lowest levels of bankruptcies since the March quarter of 1995, which is fantastic news for the Australian business community, said Peter Maloney, GlobalX chief executive. Over the 23-year period, all states and territories saw consistent reductions, with the exception of Western Australi…
Read the full article at: https://www.australasianlawyer.com.au/news/due-diligence-still-a-must-despite-australian-bankruptcy-rate-hitting-23year-low-259759.aspx
Business News of Tuesday, 29 January 2019
Source: Graphic.com.gh
Mr Felix Addo is mandated to oversee the streamlining of the operations of National Investment Bank
A consultant in restructuring and insolvency, Mr Felix E. Addo, has been appointed advisor to the National Investment Bank (NIB) to oversee the restructuring of the state-owned lender.
The Bank of Ghana (BoG) announced the appointment of Mr Addo, who is the President of the Ghana Association of Restructuring and Insolvency Advisors (GARIA), in a press statement copied to the GRAPHIC BUSINESS.
The NIB is part of five indigenous banks that are benefiting from the Ghana Amalgamated Trust (GAT) arrangement.
It was given an advisor on January 4, 2019.
BoGs January 25, 2019 stat…
Read the full article at: https://www.ghanaweb.com/GhanaHomePage/business/Felix-Addo-leads-restructuring-process-of-NIB-719033
Abhaile provides vouchers for free financial and legal advice available through the Money Advice and Budgeting Service (MABS).
A total of 11,695 individual borrowers, or over 10,000 households, in mortgage arrears have received independent expert Abhaile financial advice and negotiation support.
Court mentor
And a court mentor has helped 7,100 borrowers facing repossession proceedings, under the aegis of Abhaile.
Todays report shows that 95%of all personal insolvency arrangements negotiated by the Government-funded Abhaile are keeping people in their homes.
The figures, released jointly by the Ministers for Justice and EqualityCharlie Flanagan, and Employment Affairs and Social Protection Regina Doherty, cover the two years from July 2…
Read the full article at: https://www.lawsociety.ie/gazette/Top-Stories/4800-borrowers-in-arrears-aided-by-abhaile-duty-solicitor/
Bankruptcy used to be steeped in a negative stigma, making it difficult for people to formally declare themselves as being in a poor financial situation and having no way out of it. In order to declare yourself as bankrupt, you need to formally apply which will actually cost you money. However, this can be repaid in very small instalments should you be unable to pay up front.
Declaring yourself as bankrupt is often considered a last resort for being unable to pay off money owed. In fact, you need to have unsecured debts which total more than your assets (such as property) in order to be considered truly bankrupt. The other way to be declared bankrupt is if a creditor that you owe money to declares it against you…
Read the full article at: http://fortuneherald.com/finance/are-more-people-opting-for-bankruptcy/