The committee proposed that promoters of MSMEs who are not wilful defaulters should be allowed to bid during the insolvency process.
Lanco, holding company of several power and infrastructure projects, has debt of more than Rs 45,000 crore, taken from 29 financial creditors.
Essar Steel’s committee of creditors (CoC) had rejected ArcelorMittal’s bid — and that of rival Numetal — for failing to pass test criteria laid down in the Insolvency and Bankruptcy Code (IBC).
This will mean that ongoing cases in which the eligibility of bidders to participate in resolution plans has come up may not benefit from the changes under consideration.
Numetal, which is part owned by Russian firm VTB, moved the Ahmedabad bench of the NCLT. The tribunal will hear the matter on April 4 .
The 14-member high level committee reviewing the IBC is likely to suggest that India take a cue from countries including the US, the UK, Australia and Singapore, and adopt a similar model law set by the UN.
A senior executive with the bank said it is considering moving the apex court. “It is being deliberated, we will take a decision soon,” he added.
The committee it is learnt to have discussed issues regarding section 29A, related parties definition, moratorium on personal guarantors, issue of homebuyers among others.
NFRA needed to constantly review audit quality of companies: Injeti Srinivas, Secretary, Corporate Affairs
Injeti Srinivas spoke about the government’s push for better corporate governance through the National Financial Reporting Authority (NFRA) that’s being established.
Such a move is expected to lead to higher overseas investment in the sector and benefit incumbents such as HDFC Pension Management and ICICI Prudential Pension Fund Management, experts said.
- No blogs yet have been written by the author, we’re sure the author will contribute one soon