NCLT Admits Insolvency Plea against Jet Airways
The National Company Law Tribunal (NCLT) on Thursday admitted the State Bank of India's insolvency plea against the now-grounded Jet Airways.
 
The Mumbai bench of the tribunal has directed the Insolvency Resolution Professional (IRP) to make efforts to resolve the matter within three months, given it is of national importance. 
 
It has also asked the IRP to submit a fortnightly progress report in the case and directed to submit the first report on July 5, when the bench would next hear the case.
 
Under the Insolvency and Bankruptcy Code (IBC), lenders have 180 days time with a extension window of 90 days to resolve a stressed account. If a resolution is not achieved in this period, the NCLT can start liquidation process. 
 
The creditors, led by the SBI, approached the NCLT on Tuesday under IBC to recover their dues of about Rs 8,500 crore. The banks approached the bankruptcy court after they found the takeover proposals received from prospective investors - Etihad Airways and Hinduja Group - unimpressive. 
 
They also rejected the conditions put forward by the Gulf carrier for infusing funds into the defunct carrier. 
 
Besides offering to invest just Rs 1,700 crore against the requirement of Rs 15,000 crore to revive the crisis-hit airline, Etihad had, in its proposal, put the onus of finding a majority buyer on lenders. It also wanted exemption from giving an open offer.
 
"The lenders found the conditions unacceptable," a source told IANS. 
 
Besides Rs 8,500 crore owed to PSU banks, the airline has a total liability of about Rs 25,000 crore which includes dues of operational creditors.
 
Running out of cash, Jet Airways had suspended its entire operations on April 17.
 
Subsequently, the government re-allocated the airline's slots and foreign traffic rights to rival carriers. Shares of the beleaguered airline declined for 11 straight days, before surging over 90 per cent to close at Rs 64 per share on Thursday ahead of the NCLT hearing.
 
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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    IL&FS Mess: BSR & Associates resign as auditors of IFIN
    Days after the Ministry of Corporate Affairs (MCA) moved the National Company Law Tribunal (NCLT) seeking a bar on BSR & Associates and Deloitte Haskins & Sells from audit practices, KPMG arm BSR & Associates LLP has resigned as the statutory auditor of IL&FS Financial Services (IFIN).
     
    The audit firm said that IFIN had sought its explanation on its removal as auditors in May to which it had replied but has, so far, not received any further communication from the financial arm of the crisis-hit IL&FS.
     
    "We confirm that BSR & Associates LLP has resigned as auditors of IL&FS Financial Services (IFIN or the Company) on June 19, 2019," a statement from BSR & Associates said.
     
    "We had received a notice dated May 13, 2019 from the board of directors of IFIN seeking an explanation on our removal as auditors. We had filed our written response to this notice on May 24, 2019 and provided explanations during a meeting held with IFIN on May 29, 2019. While IFIN has not communicated its decision to us as yet, we do not intend to impose ourselves as auditors of the company," it added.
     
    Along with seeking to bar the two firms from audit operations for five years for their alleged involvement in the financial mismanagement at the IL&FS Group, the MCA also filed an application to appoint a new auditor.
     
    Deloitte Haskins told the tribunal that it is currently not the statutory auditor of IFIN, and was the auditor for the company till the financial year 2017-2018.
     
    "We have also filed our replies to the petitions and applications filed by the Ministry of Corporate Affairs with the National Company Law Tribunal and we will continue defending ourselves vigorously. As the matter is sub judice, we are unable to provide any further comments at this time," BSR & Associates said. 
     
    Both the companies were to file their replies by Wednesday (June 19).
     
    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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    Amid crisis, IL&FS arm gets nod to restart Bihar road project
    Even as IL&FS and its group companies reel under severe liquidity crisis and cases of blatant cover-up and misappropriation, the IL&FS Engineering and Construction Company (IL&FS Engineering Services) has received the Union Road Transport Ministry's approval to revive and restart a road project in Bihar.
     
    Under the project, IL&FS would rehabilitate and develop the Birpur-Bihpur Section of NH-106 in Bihar under Phase-l of National Highways Interconnectivity Improvement Projects (NHIIP).
     
    "IL&FS Engineering and Construction Company Ltd has received approval from Ministry of Road Transport and Highways (MoRTH) on June 14, 2019, for revival/restart of the road project which was previously referred for amicable foreclosure by the competent authority," the company said in a regulatory filing.
     
    IL&FS said that in view of the changed scenario, the company decided to seek permission for executing the project from the ministry.
     
    "IL&FS Engineering has received approval for restart of the project regarding rehabilitation and upgrading to 2 lanes/2 lane with paved shoulders configuration and strengthening of Birpur-Bihpur Section (from km 0 to km 106) of NH-106 in the state of Bihar under Phase-l of National Highways Interconnectivity Improvement Projects.
     
    "The work on the project shall commence within 15 days from the receipt of ministry's consent, it said.
     
    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

    Parimal Shah

    1 year ago

    Where will money come from to start the project?
    There is much more to the IFLS mess than meets the eye.

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