Debt waiver for small distressed borrowers under IBC-
Corporate affairs secretary Injeti Srinivas said discussions have been held with the microfinance industry regarding plans to give debt waiver for “small distressed borrowers” under the insolvency law framework. IBC provisions pertaining to personal guarantor to corporate debtor would be coming into effect immediately, followed by those related to partnership and proprietorship.
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Automatic CCI approval for deals under IBC-
The Competition Law Review Committee, chaired by Corporate Affairs Secretary Injeti Srinivas, has recommended a slew of changes with respect to the Act. The panel has suggested a “green channel route” for automatic approval of certain combinations. Parties to the combination may self-assess, based on specified criteria and pre-filling consultation with the CCI, whether they qualify for notification under the Green Channel. Combinations arising out of the insolvency resolution process under the IBC (Insolvency and Bankruptcy Code) should be eligible for the Green Channel.
IL & FS Fraud case –
The National Company Law Appellate Tribunal (NCLAT) on Tuesday said the NCLT Mumbai will hear an application against auditing firm Deloitte in the IL&FS Group scam case but the tribunal will not pass any order in the matter till its next hearing. The order came on an appeal moved by Deloitte against the NCLT order on August 9 rejecting the auditor’s plea which challenged the tribunal’s jurisdiction to ban it for five years for omissions and commissions in the IL&FS Group scam.
Three Level resolution plan to ease out DHFL’s liquidity crisis –
The recently introduced resolution plan, which has been agreed by the DHFL lenders, includes conversion of debt to equity, issuance of NCDs and measures to give creditors a majority stake. The incident yet again confers with current market status quo of NBFCs being worst hit in the recent financial crisis.
DHFL awaits RBI’s green signal as it is a financial institution. Further, SEBI holding the super majority needs to provide its consent too. This in turn will require an extraordinary general meeting to seek a nod from shareholders for the approval of plan.
