TagDebt Restructuring

Reimagining the Insolvency Process: A Case of Multiple Resolution Plans

[Piyush Kr. Choubey and Kaustubh Kumar are 4th year students at the National University of Study and Research in Law, Ranchi] The Ministry of Corporate Affairs (“MCA”) in January 2023 floated a discussion paper on possible changes to the Insolvency and Bankruptcy Code, 2016 (the “Code”). One of the topics in the discussion paper was “Reimagining the consideration of the resolution plan and the...

How Will Courts Decide in Bond Holders versus Central Banks?

[Bhargavi Zaveri Shah a doctoral researcher at the Faculty of Law, National University of Singapore and an editor of IndiaCorpLaw Blog and Harsh Vardhan is a management consultant] The Supreme Court is currently hearing an appeal against a Bombay High Court judgement on Yes Bank’s restructuring plan. The question at hand in this appeal is this: whether, as part of Yes Bank’s restructuring...

Dilemma Surrounding Assignment of Not Readily Realisable Assets (‘NRRA’) under the IBC

[Rohit Sharma is a Partner at Mamta Binani & Associates, Mumbai] By way of a notification dated 13 November 2020, the Insolvency and Bankruptcy Board of India (‘IBBI’) inserted regulation 37A to the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 (‘Liquidation Process Regulations’), which states as follows: “37A.  Assignment of not readily realisable assets. A...

The Bombay High Court’s Yes Bank Judgement: Falling Short on Fairness

[Harsh Vardhan is a management consultant and Bhargavi Zaveri Shah a doctoral researcher at the Faculty of Law, National University of Singapore and an editor of IndiaCorpLaw Blog] Last week, the Bombay High Court set aside the Reserve Bank of India (RBI)-appointed administrator’s decision to write off the additional tier (AT1) bonds issued by Yes Bank in 2016 and 2017. In 2020, when a...

‘Beneficial Owner’ is not a ‘Related Party’ under the IBC

[Tejas A. Jha is an Advocate, practicing in New Delhi] Recently, a major cause of concern has been highlighted by legal experts in regard to financial creditors seeking to invoke pledged shares in the corporate debtor. The concern is that when the said pledged shares are invoked, the financial creditor’s seat in the committee of creditors of the corporate debtor (“CoC”) may be put to challenge on...

Supreme Court Decision in Vidarbha: Return to the Pre-IBC Era

[Abhismita Goswami is a Trainee Associate at Mindspright Legal, Mumbai] An application for initiating a corporate insolvency resolution process (“CIRP”) under the Insolvency and Bankruptcy Code, 2016 (“IBC”/ “Code”) can be filed with the National Company Law Tribunal (“NCLT”) by the financial creditors (“FCs”) and operational creditors (“OCs”) of a corporate debtor (“CD”), under section 7 and...

The Need for Standardizing Valuation Methods in Corporate Insolvency

[Saurabh Agnihotri is a 4th year BA. LLB student and Ayushi Mehta a 4th year BBA. LLB student at Gujarat National Law University] Under the Insolvency and Bankruptcy Code, 2016 (“IBC”), valuation of assets is one of the core features dealt with in a corporate insolvency resolution process (“CIRP”). The process of valuation conducted by registered “valuers” or valuation professionals helps...

Pre-Packaged Insolvency: A Stumbling Block for the MSME Sector

[Gunjan Singh and Umang Chaturvedi are 3rd year B.A. LL.B. (Hons.) students at Rajiv Gandhi National University of Law, Punjab] The disruption of economic processes and business cycles owing to the pandemic caused a major blow to the functioning of the industrial sector. Additionally, it impacted the entities who had already borrowed money from the market or financial institutions, as they were...

Priority and Value of Security Interest Cannot be a Ground for Challenge of Resolution Plan

[Anugya Mukati and Kirti Dhoke are undergraduate students at the National Law Institute University, Bhopal] The Supreme Court of India in a recent judgment in the matter of India Resurgence Arc Private Limited v. Amit Metaliks Limited, held that a Resolution Plan that has been approved under the Insolvency and Bankruptcy Code ( “the Code”) cannot be challenged by a dissenting financial creditor...

Extinguishment of a Personal Guarantor’s Right of Subrogation: A Critique

[Vijay Rohan Krishna is pursuing his LLM (Corporate and Commercial Laws) at NUJS, Kolkata, and Sambhawi Sanghamitra is a 3rd year B.A. LL.B. (Hons.) student at CNLU, Patna] Ever since personal guarantors were made liable under the Insolvency and Bankruptcy Code, 2016 (IBC) by way of the notification dated 15 November 2019, their rights and liabilities under the IBC have been extensively debated...

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