As Indian banks grapple with nearly $150 billion in bad loans, the National Company Law Tribunal (NCLT) has admitted about 730 bankruptcy cases since the Insolvency and Bankruptcy Code came into effect two years ago.
Recently, the National Company Law Appellate Tribunal (NCLAT) allowed the three bidders for Bhushan Power and Steel to revise their bids before Monday and the bankruptcy tribunal admitted proceedings against apparel maker Provogue Ltd. Also, the Allahabad High Court asked if the Reserve Bank of India could relax its definition of a defaulter, and the bankruptcy-resolution professional for Lanco Infratech submitted a liquidation petition with NCLT.
Here is a detailed look in a weekly round-up on these cases.
Bhushan Power and Steel
The NCLAT has asked the creditor panel of Bhushan Power and Steel to allow all the bidders – Tata Steel, JSW Steel and Liberty House -- to re-submit their bids before Monday, said reports.
Tata Steel had emerged as the winner in February, with a Rs 17,000 crore bid. However, Liberty House entered the fray 11 days after the deadline for bid submission. Then, last week, JSW Steel revised its bid for Bhushan Power and Steel after Tata Steel was declared winner for the second time.
This led Tata Steel to remark that the bankruptcy norms were being violated, said media reports.
Provogue
NCLT has admitted bankruptcy proceedings against apparel maker Provogue Ltd based on a petition by Andhra Bank.
Provogue informed the stock exchanges that an interim bankruptcy-resolution professional Jitendra Kumar Yadav has been hired. The total debt of Provogue is Rs 228 crore, of which Rs 98 crore is owed to Andhra Bank. Other lenders include IndusInd Bank, Corporation Bank, Punjab National Bank and Small Industries Development Bank of India, a Mint report said.
Power sector
The Allahabad High Court has enquired if the Reserve Bank of India (RBI) can relax its February 12 circular, specifically for companies in the power sector. The circular says companies will be labelled as defaulters if they are late in servicing their loans even by a day.
The RBI has to file a response by August 9, a Financial Express report said.
Lanco Infratech
Lanco Infratech is likely to end up in liquidation after its bankruptcy-resolution professional filed a liquidation petition with the NCLT last week. The case will be heard on August 14.
The petition was filed because the sole bankruptcy-resolution plan submitted by Thriveni Earthmovers Pvt. Ltd was rejected by the committee of creditors, Lanco Infratech informed the exchange.
Other cases
Japanese major Sumitomo Corporation has petitioned NCLT against Telangana State Power Generation Corporation to recover debt close to Rs 76 crore, The Economic Times reported.
Also, Axis Bank is preparing to move NCLT against GMR Chhattisgarh Energy Ltd while IDBI Bank and Punjab National Bank are getting ready to petition the tribunal against Ind-Barath Energy (Utkal) Ltd, Lanco Anpara Power Ltd and Jindal India Thermal Power Ltd, the Mint reported last week.
National Company Law Appellate Tribunal, NCLAT, NCLT, Provogue, Allahabad High Court, Lanco Infratech.