Synopsis
The JIL went into the insolvency process in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium. In the first round of insolvency proceeding, the Rs 7,350-crore bid of Lakshadweep, part of Suraksha Group, was rejected by lenders.
On November 6, 2019, the Supreme Court directed the completion of Jaypee Infratech s insolvency process within 90 days and ordered that the revised resolution plan to be invited only from NBCC and Suraksha Realty.
State-owned NBCC and Suraksha group, which are in the race to acquire debt-laden Jaypee Infratech Ltd (JIL), will submit their revised bids by Tuesday.
According to sources, a meeting of Committee of Creditors (CoC) is likely to be held on May 19 to discuss the bids submitted by both the parties under the Corporate Insolvency Resolution Process (CIRP). In the last meeting of the CoC held on Saturday, financial creditors, which includes representatives of lenders and homebuyers, discussed their
C Sivasankaran is facing investigations by the authorities for causing a loss to banks
CHENNAI: IDBI Bank has said that it has accepted the one-time settlement offer by Siva Industries’s promoters a part of Aircel owner C Sivasankaran’s group as it would lose more money otherwise.
IDBI Bank had initiated bankruptcy proceedings against Siva Industries in 2019. The loans were availed by a group company that later merged with Siva Industries. Sivasankaran is facing investigations by the authorities for causing a loss to banks.
According to banking sources, IDBI Bank has already written to the CBI, whichhas confirmed that commercial dealings will not affect the criminal investigation process. “Recovery for the bank through one-time settlement will be higher vis-a-vis recovery through NCLT liquidation based on the valuation of assets available as security.
Creditors to scrap bankruptcy process of Siva Industries
Sivasankaran, who was the founder of Aircel before he sold it to Malaysia’s Maxis Communications, is no stranger to controversy.
Synopsis
The creditors, which include State Bank of India and Malaysia’s Maxis Communications Bhd, the former owner of telecom operator Aircel, have accepted Sivasankaran’s offer to pay them Rs 500 crore in return for cancelling all outstanding claims and withdrawing legal proceedings against his company, according to the people cited above. The creditors voted in favour of the withdrawal last week.
Creditors have agreed to withdraw bankruptcy proceedings against Siva Industries and Holding, the group holding company of businessman C Sivasankaran, and accept an out-of-court offer from him, according to people familiar with the matter. Bankruptcy experts termed the development unusual, citing the rejection of such offers by promoters in the past.