NCLAT to decide CoC powers in Essar Steel bankruptcy case
The National Company Law Appellate Tribunal (NCLAT) hearing the Essar Steel bankruptcy proceedings said it would decide on the powers of the Committee of Creditors (CoC).
 
The development came on Tuesday as senior advocate Kapil Sibal argued that "distribution of the financial package" arising from the sale of Orissa Slurry Pipeline Infrastructure (OSPIL) in the Essar Steel bankruptcy proceedings by the CoC "is illegal and discriminatory".
 
Sibal was arguing on behalf of Standard Chartered Bank during the hearing of Essar Steel bankruptcy proceeding in NCLAT. Standard Chartered Bank (SCB) is a financial creditor of Essar Steel (ESIL).
 
Sibal argued the "illegality resulted from secret negotiations between the core committee and AM (ArcelorMittal) India" and this was detrimental to all creditors.
 
He termed the secret settlement with the major lenders of OSPIL as a "scam". Standard Chartered Bank has alleged that the amount of Rs 2,500 crore should have been paid to it rather than getting diverted to lenders of OSPIL.
 
Subsequently, the bench observed that out of the 10 people, who are financial creditors of ESIL, five to six are lenders to OSPIL and wanted to know if Rs 2,500 crore would go only to these lenders.
 
Further, the bench said that it would decide on the power of CoC. Besides, Sibal said that the reduction in the upfront amount from Rs 42,000 crore to Rs 39,500 crore and the agreement to delegate the manner of distribution was evidently designed to prejudice the right of SCB.
 
He cited the letter of September 10, 2018 and a note dated September 25, 2018, wherein AM India had already decided the manner of distribution amongst secured financial creditors.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Jet Airways CEO, CFO resign as revival hopes fade
Grounded Jet Airways' Chief Executive (CEO) Vinay Dube has become the latest senior executive to leave the company, further damaging hopes of the airline's revival.
 
According to a Jet Airways BSE filing on Tuesday: "We wish to inform you that Vinay Dube, Chief Executive Officer of the company, vide his letter dated May 14, 2019, has resigned from the services of the company with immediate effect due to personal reasons." 
 
Dube's resignation comes as a double blow on Tuesday for the grounded airline as earlier in the day, the company's Chief Financial Officer (CFO) and Deputy Chief Executive (CEO) Amit Agarwal also resigned. 
 
Tuesday's exits come days after the airline's top executive Gaurang Shetty, considered close to founder Naresh Goyal, resigned from the board of directors.
 
Having run out of cash, Jet Airways suspended its operations on April 17. Besides employees exiting, its aircraft are also being gradually de-registered. These events have added to the growing uncertainty about airline's revival.
 
Lenders of Jet Airways led by state-run State Bank of India (SBI) are currently in the process of selling the airline to recover their dues of over Rs 8,400 crore. Private equity firm TPG Capital, Indigo Partners, National Investment and Infrastructure Fund (NIIF) and Etihad Airways had been shortlisted to place their bids after they submitted Expressions of Interest (EoIs).
 
On May 10 -- the last date for submitting the binding bids -- only Etihad gave its offer and that too in the eleventh hour. The other two bids for the airline were unsolicited.
 
Faced with salary delays and uncertainty over revival of the airline, thousand of Jet Airways employees, especially pilots and engineers, have left the company to join rival carriers.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Second US lawsuit brought against Aurobindo Pharma
Aurobindo Pharma on Tuesday informed stock exchanges that the company, as well as other firms in the US generic drug industry, are facing a second lawsuit for violation of antitrust laws.
 
This lawsuit, filed on May 10, was the second after the one filed in December 2016. 
 
"US states filed a second lawsuit in Federal Court similarly alleging that Aurobindo and other companies in the US generic drug industry had violated antitrust laws by fixing prices and allocating customers (the 'Second State AG Action')," Aurobindo Pharma said in a regulatory filing. 
 
The company said the "Second State AG Action" includes additional parties and additional products which were not referenced in the "First State AG Action" .
 
In December 2016, the Attorney General (AG) of the State of Connecticut along with the Attorneys' General of various other US states filed a lawsuit in Federal Court alleging that Aurobindo and other companies in the US generic drug industry had violated antitrust laws by fixing prices and allocating customers - the "First State AG Action".
 
"On 18 June 2018, an amended complaint was filed in the First State AG Action. Aurobindo has denied all the relevant accusations in the First State AG Action and is vigorously defending against the matter," the company said.
 
The statement said the company is reviewing the "Second State AG Action and expect that we will be filing papers with the Federal Court in due course denying each of the relevant accusations." 
 
Aurobindo does not, at this juncture, anticipate that these matters will have a material impact on the its operations or business results, it added. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

AAR

1 week ago

Usually factories of Indian pharma companies are booked for not meeting the US standards of manufacturing. This one about price fixing and customer allocation is new kind of violation.

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