Future Group to zero in on saving, reconstructing firms as Reliance bargain dismissed

 

Obligation ridden Future Group is currently zeroing in on saving and remaking firms, for example, - - Future Lifestyle Fashions, Future Supply Chain Solutions, Future Consumer and Future Enterprises, after the Rs 24,713-crore manage Reliance Retail was dismissed by got banks, as indicated by industry sources.

In any case, Future Group's leader firm Future Retail Ltd (FRL), which has almost Rs 18,000 crore obligation, will undoubtedly confront the corporate bankruptcy goal process under the steady gaze of the National Company Law Tribunal (NCLT).

Different organizations like Future Enterprises Ltd (FEL), Future Lifestyle Fashions Ltd (FLFL), Future Supply Chain Solutions Ltd (FSCSL), Future Consumer Ltd (FCL) can support all alone and can be remade by rebuilding their liabilities with the assistance of current banks and financial backers, said an industry source near the Future Group.

"FEL has over Rs 5,000 crore advances and since the organization is selling its stake in Future Generali India Insurance business. Presently it is getting around Rs 3,000 crore from it. The arrangement is practically finished. So that will leave a modest quantity of obligation and that can be overseen by FEL," a source said.

FMCG organization FCL has resources, for example, a 110-section of land food park at Tumkur, Karnataka, which can be utilized to remake the organization, he added.

FSCSL has distribution centers the nation over. In Nagpur, FSCSL has one of the biggest and the most exceptionally computerized dispersion places in India. "For that reason the financial backers would be more quick to help and reconstruct these organizations," he added...Read More

Flipkart gets stay on insolvency proceedings initiated against it at NCLT

International News
Flipkart has obtained a stay order on insolvency proceedings initiated against the e-commerce firm by the National Company Law Tribunal (NCLT) in a case involving alleged withholding of dues to a seller on its platform.
CloudWalker Streaming, a Mumbai-based supplier of LED TVs, has alleged the Flipkart did not honour its purchase agreement and had not paid dues totalling to Rs 26.95 crore. The firm moved NCLT and had petitioned that Flipkart be recommended for insolvency under Insolvency and Bankruptcy Code (IBC).
On October 24, accepting the petitioner’s argument, the Bengaluru bench of NCLT ordered initiation of insolvency proceedings. Flipkart followed up with a writ petition in the Karnataka High Court and a day later obtained a stay on the NCLT order, a Flipkart spokesperson told Business Standard.In its next hearing held on October 31, the Karnataka HC ordered continuation of the stay. The date of the next hearing has not been set yet. “In view of the above, it is clarified that as on date, Flipkart is not undergoing corporate insolvency resolution process and is continuing its operations on a going concern basis under its present management,” the company said in an email statement.
The matter pertains to an agreement between CloudWalker and Flipkart that dates back to December 2016. CloudWalker, which sells TV under Cloud TV brand, had alleged that Flipkart had signed the agreement to purchase stock worth Rs 103.62 crore but only bought goods worth Rs 85.57 crore, and that too after many delays.After receiving two batches of TVs — in January and March 2017 — Flipkart stopped taking deliveries on the pretext of lack of warehousing space, which in piling up of unsold inventory with the seller, according to claims in the order copy dated October 24 posted on the NCLT website.

Further, “in an attempt to gain profit out of the goods ordered, (Flipkart) coerced the operational creditor (CloudWalker) to offer a discount on the LED TVs, which were already imported and warehoused by the operational creditor on behalf of the corporate debtor (Flipkart)...READ MORE

NCLT sets 90-day deadline for Jet Airways bankruptcy resolution

Company News

The National Company Law Tribunal (NCLT) on Thursday admitted the insolvency petition moved by State Bank of India (SBI) — under section 7 of the Insolvency and Bankruptcy Code (IBC) — against Jet Airways, and instructed that the resolution process be wrapped up in 90 days as the matter is of national importance.
Typically, the corporate insolvency resolution process (CIRP) should be completed in 180 days, and an extra 90 days’ time is granted in case the process doesn’t conclude in the stipulated period. The interim resolution professional (RP) has been instructed to submit fortnightly progress reports on the CIRP process, with the first to be filed on July 5, the day of the next hearing.
The tribunal also declared a moratorium on recovery of dues from Jet, the country’s first aviation firm to be admitted for bankruptcy. Jet had over 120 planes, of which only about a dozen have not been de-registered by the civil aviation regulator. The rest of the planes had their leases terminated and many of them have been inducted by other airlines in India or abroad.
Also, on a day which saw the beleaguered airline being admitted under the insolvency process, Jet shares posted their highest single-day gain on the bourses on Thursday, rising 93 per cent on the BSE to end at Rs 64 after declining 75 per cent in the previous 10 sessions. Such a movement in share prices is highly unusual.Moreover, presiding judges V P Singh and Ravi Kumar Duraisamy did not take cognizance of the Dutch court order that had declared Jet bankrupt, given that cross-border insolvency is still not in place under the IBC and because the jurisdiction of the corporate debtor rests with the tribunal (as the company is listed in India).

 SBI, in its plea, said the airline had defaulted on working capital loans of up to Rs 970 crore. Jet had a working capital facility of Rs 505 crore. This account was overdrawn by around Rs 460 crore for 30 days.

Bajaj Auto unveils new version of Avenger Street 160 model at Rs 82,253

Company News

Bajaj Auto Friday said it has launched a new version of its Avenger Street 160 model equipped with anti-lock braking system (ABS) priced at Rs 82,253 (ex-Showroom Delhi).

The new Avenger Street 160 has a single channel ABS along with a roadster design headlamp with LED DRLs, new graphics with larger insignia, black alloy wheels and rubberised rear grab, Bajaj Auto said in a statement.

Commenting on the launch, Bajaj Auto Vice-President (Marketing) Motorcycles Narayan Sundararaman said, "Avenger Street 160 with ABS provides contemporary styling whilst retaining its classical roadster design."

The discerning customer gets a definite step-up into the world of classic biking. This will open up choices to the entry-level sports customers, he added


 The new Avenger Street 160 will bring a sporty cruiser experience to the large set of emerging 150-160cc users, the company said.

NCLAT rules against Ingen for delaying Orchid Pharma resolution plan

Company News
The National Company Law Appellate Tribunal has directed the Centre to take action against US-based investor Ingen Capital Group LLC, its managing director and other directors for not implementing a resolution plan for Chennai-based Orchid Pharma after its proposal was selected by the Committee of Creditors (CoC) and National Company Law Tribunal (NCLT) for implementation. The order comes on a plea filed by Ingen Capital against the Resolution Professional (RP) with the appellate tribunal.

An NCLAT bench comprising Justice S J Mukhopadhaya and Justice Bansi Lal Bhat directed the Centre through the Ministry of Corporate Affairs to take appropriate steps.

"If the appellant (Ingen Capital) has no office in India then the Central Government through Ministry of Corporate Affairs may take up the matter with USA, where the appellant company is situated," said the order.

The appelate tribunal ordered Ingen Capital to be deposit Rs 10 lakh in favour of the CoC within 30 days. The bench observed that Ingen failed to deposit the amount at an earlier date.

The tribunal in an order on February 1, 2019 issued a show cause notice to Ingen Capital directors Umesh Bhatia and Harish Bhatia "as to why appropriate action be not taken against them and the NCLT, Central government and its agancies be not asked to take appropriate steps against the company and its directors and why cost not be imposed on them."


 With the directors not submitting a proper reply, the NCLAT in an order dated March 1, 2019, sought the investor to file show cause reply within three weeks, failing which the Appellate Tribunal may initiate a contempt proceeding against them and may issue bailable warrant of arrest.

Essar Steel insolvency case: Lenders to gain more, Arcelor tells NCLT

Companies News:

Defending itself against Standard Chartered Bank from diluting its bid for Essar Steel, ArcelorMittal on Thursday told the National Company Law Tribunal’s Ahmedabad Bench that lenders would gain more from the deal. The bank alleged that as against an upfront payment of Rs 42,000 crore, in addition to working capital adjustments of Rs 2,500 crore, the LN Mittal-led firm negotiated its bid downwards in collaboration with State Bank of India-led Committee of Creditors (CoC).

The bank said it has been discriminated in ArcelorMittal's resolution plan, which both the firm and the CoC have refuted.

ArcelorMittal told the two-members NCLT Bench, comprising adjudicating authorities Harihar Prakash Chaturvedi and Manorama Kumari, contrary to the bank’s claims its resolution plan was openly negotiated by members of the CoC to include an upfront payment of Rs 39,500 crore as well as a guaranteed working capital adjustments worth Rs 2,500 crore. The company said it was committed to passing on any additional working capital accrued with Essar Steel to lenders at the time of acquisition as valued by an independent auditor.


 "Ordinarily a successor gets the working capital but what we did was to give away this working capital to lenders. Other than Rs 42000 crore, I also complied with Supreme Court (SC) ruling to settle dues worth Rs 7000 crore (in Uttam Galva and KSS Petron) as well as infusing Rs 8000 crore as equity," ArcelorMittal's legal counsel told the NCLT bench.