NCLT admits Tulip Hotels into insolvency

Reliance Innoventures, a company owned by Anil Ambani, has been admitted for insolvency proceedings by the national company law tribunal (NCLT) after JC Flowers Asset Reconstruction Company, which took over Yes Bank's bad loan portfolio worth ₹ 48,000 crore in December, claimed that Reliance Innoventures had defaulted on its debts. JC Flowers claimed that Reliance Innoventures defaulted on interest payments worth ₹ 100 crore, however, Reliance Innoventures countered JC Flowers's assertions at NCLT claiming there was no default.

The restructuring will avoid lenders suffering a significant write-down as the loans and debt facilities are currently classified as standard accounts. The lenders have previously refrained from providing new loans, partly due to Go First's losses and difficulties with bankrupt airlines, Jet Airways and Kingfisher Airlines.

The funds raised will be utilised to prepay Suzlon Energy's debt and capital expenditure. It will help the company in meeting early redemption of foreign currency convertible bonds (FCCBs) worth $35,931,200, which were originally due for payment in 2032.

The Central Bureau of Investigation has registered two separate cases against Mumbai-based Varun Industries Ltd for allegedly defrauding two public sector banks for an amount to the tune of Rs 388.17 crore. The allegations in the complaint revealed that the accused company had availed various credit facilities from the Central Bank of India in a consortium led by Indian Bank, with a total sanctioned working capital-term loan limit of Rs 292.15 crore in September 2011.

The corporate portfolio includes eight accounts that turned non-performing after 2019. These include Prometheon Enterprises with a debt of ₹1,496 crore, Malvern Travels, UK, with a debt of ₹537 crore, and Katerra India with ₹521 crore.

Based on binding bids from the government-backed bad bank, lenders have initiated a Swiss challenge auction for Hitodi Infra. The lenders, including Bank of Baroda, ICICI Bank, Axis Bank, Bank of India, IDBI Bank and State Bank of India, have appointed BoB Capital as the process advisor. NARCL has offered ₹465 crore for the outstanding loans of ₹2,101 crore.

The National Company Law Appellate Tribunal (NCLAT) on Wednesday deferred the hearing of IDBI bank's plea against Zee Entertainment till August 17. The private lender has challenged an NCLT order, which had on May 19 rejected its plea to initiate insolvency proceedings against the media major.

The steelmaker, which is also looking to expand production capacity, will meet its capital expenditure requirements from internal accruals, joint managing director Jayant Acharya said.

A handful of Russian state-owned companies operating in backbone industries on Wednesday asked for government support to help reduce their debt burdens after a central bank rate hike to 15%.

MUMBAI: Banks have disbursed over Rs 1,400 crore in loans under the 'frictionless credit' platform since its launch on August 17, a senior Reserve Ban.