NCLT sets 90-day deadline for Jet Airways bankruptcy resolution

Jet stopped operations on April 17 leaving over 14,000 employees in the lurch

The National Company Law Tribunal (NCLT) on Thursday admitted the insolvency petition moved by State Bank of India (SBI) — under section 7 of the Insolvency and Bankruptcy Code (IBC) — against Jet Airways, and instructed that the resolution process be wrapped up in 90 days as the matter is of national importance.

Typically, the corporate insolvency resolution process (CIRP) should be completed in 180 days, and an extra 90 days’ time is granted in case the process doesn’t conclude in the stipulated period. The interim resolution professional (RP) has been instructed to submit fortnightly progress reports on the CIRP process, with the first to be filed on July 5, the day of the next hearing.

The tribunal also declared a moratorium on recovery of dues from Jet, the country’s first aviation firm to be admitted for bankruptcy. Jet had over 120 planes, of which only about a dozen have not been de-registered by the civil aviation regulator. The rest of the planes had their leases terminated and many of them have been inducted by other airlines in India or abroad.

Also, on a day which saw the beleaguered airline being admitted under the insolvency process, Jet shares posted their highest single-day gain on the bourses on Thursday, rising 93 per cent on the BSE to end at Rs 64 after declining 75 per cent in the previous 10 sessions. Such a movement in share prices is highly unusual.

Moreover, presiding judges V P Singh and Ravi Kumar Duraisamy did not take cognizance of the Dutch court order that had declared Jet bankrupt, given that cross-border insolvency is still not in place under the IBC and because the jurisdiction of the corporate debtor rests with the tribunal (as the company is listed in India).

SBI, in its plea, said the airline had defaulted on working capital loans of up to Rs 970 crore. Jet had a working capital facility of Rs 505 crore. This account was overdrawn by around Rs 460 crore for 30 days. The lender had also provided a term loan facility of Rs 1,292 crore to the carrier, which owes over Rs 8,000 crore to a consortium of 26 lenders.

Jet stopped operations on April 17 leaving over 14,000 employees in the lurch. SBI had declared Jet an NPA and made provisions in its Q4 results. The other 25 lenders will have to get their claims admitted when the interim RP begins to admit claims of various lenders. On the Jet case, SBI chairman Rajnish Kumar said lenders had taken every decision after a lot of deliberation.

“It (taking Jet to NCLT) is the last effort. This is the first case of bankruptcy in the aviation sector, which will be tested,” he said on the sidelines of the bank’s annual general meeting. Nobody appeared on behalf of the airline as most of the key management personnel had resigned as early as in May, the bank told the tribunal.

Ashish Chhawchharia of Grant Thornton has been chosen as the interim RP by SBI for 30 days, and the final decision on the RP will be taken by the committee of creditors. The interim RP will gather details of the airline’s assets along with along with inviting claims from creditors and employees. The two operational creditors — who had filed separate insolvency pleas — will file their claims with the interim RP now that the SBI plea is admitted.

Suzlon Energy jumps as bankers meet today to resolve $1.4 billion debt

Approval for the proposal is critical for Suzlon as ratings on its long-term bank facilities were downgraded at Care Ratings to D from BB in April

Suzlon Energy jumped the most in five months on Thursday a day before its lenders are poised to consider the beleaguered wind-turbine maker’s plan to sell its operations and maintenance business to pare debt.

Suzlon shares gained 22.4 per cent to close at Rs 4.1 in Mumbai paring its losses for the year to 24 per cent. The benchmark BSE Sensex index gained 9.9 per cent this year. The firm plans to offer a so-called one time settlement to the lenders led by SBI using the proceeds of the sale, said sources, asking not to be identified as the information is private. A spokesman for SBI and a spokeswoman for Suzlon didn’t immediately respond to an email seeking comment.

Approval for the proposal is critical for Suzlon as ratings on its long-term bank facilities were downgraded at Care Ratings to D from BB in April.

“Unfortunately, on account of a temporary mismatch in cash flow, the company was unable to fund its scheduled repayment obligations to its lenders,” Suzlon Chief Executive Officer J.P. Chalasani said in an exchange filing in April, reacting to the downgrade. He said the company was actively working with lenders for a debt revamp.

Indiabulls Housing Finance-Lakshmi Vilas Bank merger gets CCI nod

In April this year, Lakshmi Vilas Bank had announced its merger with Indiabulls Housing Finance in a share-swap deal with an intent to create a combined entity with larger capital base and wider geographical reach.

Indiabulls Housing Finance on Friday said the Competition Commission of India (CCI) has approved the proposed merger of the company with Lakshmi Vilas Bank.

In April this year, Lakshmi Vilas Bank had announced its merger with Indiabulls Housing Finance in a share-swap deal with an intent to create a combined entity with larger capital base and wider geographical reach.

“The Competition Commission of India… at its meeting held on June 20, 2019, considered the proposed combination and approved the same,” Indiabulls Housing Finance said in a BSE filing.

The board of Lakshmi Vilas Bank had approved the merger with Indiabulls Housing Finance in which shareholders of the bank will get 14 shares of Indiabulls Housing Finance for every 100 shares they hold.

The combined entity, with employee strength of 14,302, will have a loan book size of Rs 1.23 lakh crore for the first nine-month period of 2018-19.

After the proposed merger, Indiabulls Housing Finance will get access to low cost deposits, geographical diversification and expanded client-base and cross-selling opportunities.

Gold price jumps 2.21% on US Federal Reserve’s interest rate cut signal

Yellow metal likely to hit Rs 35,000/10 gm; energy, base metals also firm up

Standard gold price in India on Thursday recorded the highest single-day gain of 2.21 per cent in recent years, following a sharp spurt in its prices in global markets on the US Fed’s dovish stance on economic growth in the United States.

The data compiled by the India Bullion and Jewellers Association (IBJA) showed standard gold price  at Rs 33,559 per 10 gm in Zaveri Bazaar here on Thursday, barely 0.3 per cent lower than the all-time high of Rs 33, 716 in February this year. On Wednesday, Standard gold price  in Zaveri Bazaar was Rs 32,851 per 10 gm.

Oil prices, too, jumped on Thursday but on rising US-Iran tensions, with gains accelerating on a cryptic tweet by American President Donald Trump after Iranian forces shot down a US spy drone. At 8.35 pm IST, US benchmark West Texas Intermediate climbed 6.3 per cent to $57.13 a barrel, while Brent futures in London gained 4.7 per cent to $64.69 a barrel.

Base metals remained resilient to trade, with a marginal gain on the London Metal Exchange (LME).

“The sharp spurt in gold prices can be attributed to the dollar’s weakness. The US Fed in its last meeting changed the narrative. So far, the narrative has been that the dollar interest rate is going up. But, the Fed is now turning dovish due to the ongoing trade talks, with the delay affecting the US economy. Thus, the Fed signals problems in the US economy with steady interest rate cuts. Consequently, crude and base metals did not follow the speed of surge in gold prices,” said Gnanasekar Thiagarajan, director, Commtrendz.

On Wednesday, the US Federal Reserve hinted at interest rate cuts beginning as early as July, saying it is ready to battle growing global and domestic economic risks as it took the stock of rising trade tensions and growing concerns about weak inflation. Lower interest rates, in fact, decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, thus making gold cheaper for investors holding other currencies.

In the US, gold price hit the highest in five years in the late Wednesday trade as investors sought refuge in the bullion as a safe haven. Spot gold was up by 2 per cent at $1,386.38 an ounce, the highest since March 17, 2014. The gold price traded at $1,382.87 an ounce in London on Thursday.

“Gold has given a breakout above $1,365 an ounce, which could lead to a sustained upmove towards $1,430-1,440 an ounce. Domestic gold prices also holding firm above the breakout level of Rs 33,400 per 10 gm could trigger a further upside to Rs 34,300 per 10 gm in the short term,” said Navneet Damani, vice president, Motilal Oswal Financial Services.

Both Gnanasekar and Damani forecast gold price in the rupee term at Rs 35,000 per 10 gm in the near term before investors start a pullback from riskier assets like bullion for investment in equity markets.

On India’s Multi Commodity Exchange (MCX), gold futures for delivery in August jumped by 2.31 per cent to trade at Rs 33,844 per 10 gm. Silver and crude oil futures also moved up by 2.43 per cent and 2.7 per cent to Rs 38,210 a kg and Rs 3,876 a barrel for delivery in July, respectively. Copper and zinc futures jumped, too, jumped, albeit marginally.

Meanwhile, jewellery stores remained deserted as buyers deferred their non-essential purchases awaiting softness in gold prices.

Daily Bulletin (21st June, 2019)

There are no current notifications of our companies on this date

1. Scrip code : 524208
Name : Aarti Industries Ltd
Subject : Announcement under Regulation 30 (LODR)-Scheme of Arrangement
Intimation of order of the NCLT approving the composite scheme of Arrangement between Aarti Industries Limited, Arti Surfactants Limited and Nascent Chemical Industries Limited and their respective shareholders.

2. Scrip code : 531223
Name : Anjani Synthetics Limited
Subject : Announcement under Regulation 30 (LODR)-Acquisition
With Reference to above mentioned subject, please note that ANITA VASUDEV AGARWAL has purchased 4,500 equity shares on 21.06.2019 of Anjani Synthetics Limited, a Company registered under the Companies act, 1956, having its registered office at 221 (Maliya) New Cloth Market, Ahmedabad-380002. Please find enclosed herewith Annexure the Disclosure as per Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011

3. Scrip code : 532187
Name : IndusInd Bank Ltd.
Subject : Indusind Bank Takes Note Of Record Date July 4, 2019 Determined By Bharat Financial Inclusion Ltd. (BFIL)For The Purposes Of Determining The Shareholders Of BFIL Who Shall Be Entitled To Receive Shares Of The Bank In Accordance With The Scheme Of Arrangement Amongst BFIL, IBL And IFIL.
IndusInd Bank takes note of Record Date July 4, 2019 determined by Bharat Financial Inclusion Ltd. (BFIL)for the purposes of determining the shareholders of BFIL who shall be entitled to receive shares of the Bank. In accordance with the Scheme and pursuant to its effectiveness, the Bank will issue and allot to those shareholders of BFIL whose names would appear in the register of members of BFIL on the Record Date, 639 (six hundred and thirty nine) equity shares of the Bank, credited as fully paid up, for every 1,000 (one thousand) equity shares of the face value of INR 10/ (Rupees ten) each fully paid-up held by such member in BFIL.

4. Scrip code : 533181
Name : Intrasoft Technologies Limited
Subject : Announcement under Regulation 30 (LODR)-Updates on Acquisition
Shares Purchase by Promoter

5. Scrip code : 534690
Subject : Approval Received From The Competition Commission Of India For The Proposed Amalgamation Of Indiabulls Housing Finance Limited (IHFL) And Indiabulls Commercial Credit Limited (ICCL) (Which Is A Wholly-Owned Subsidiary Of IHFL), As ‘Transferor.
Companies’, Into And With The Lakshmi Vilas Bank Limited (LVB), As ‘Transferee Company’. In compliance with applicable regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, as amended and with reference to our intimation on April 05, 2019 and May 03, 2019 on the proposed amalgamation of Indiabulls Housing Finance Limited (the ‘Company’ or ‘IBH’ or ‘Transferor Company 1’) and Indiabulls Commercial Credit Limited (‘ICCL’ or ‘Transferor Company 2’) into and with The Lakshmi Vilas Bank Limited (‘LVB’ or ‘Transferee Company’) under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013, as amended, Companies (Compromises, arrangements and Amalgamations) Rules, 2016, as amended, and other rules and regulations framed thereunder, the Bank has taken up with applicable regulatory authorities for approval of the amalgamation process. Further, as intimated by Bank to the Stock Exchanges on April 12, 2019, April 22, 2019 and May 20, 2019 on the proposed preferential issue of Equity Shares to Indiabulls Housing Finance Limited, the Bank had also sought approval from Competition Commission of India (‘CCI’). Towards the same, this is to inform that the CCI has by way of its letter dated June 20, 2019 intimated that at its meeting held on June 20, 2019, considered the proposed combination (Comb Reg. No. (C-2019/05/662) and approved the same under Section 31 (1) of the Competition Act, 2002. Further, it is informed that the Amalgamation process is also subject to receipt of other applicable regulatory approvals, which we note to intimate on receipt. This is for your information and record

6. Scrip code : 540650
Name : Magadh Sugar & Energy Limited
Subject : Intimation Of Record Date For Issue Of Bonus Shares
Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements), 2015, in continuation with the announcement made by the Company on May 14, 2019, for Issue of Bonus shares in the ratio of 4:10 [i.e. 4 (Four) Bonus equity shares of Rs. 10/- each for every 10 (Ten) existing fully paid up equity shares of Rs. 10/- each], subject to the approval of the shareholders through Postal Ballot, the Company has fixed June 30, 2019 as the Record date to determine eligible shareholders entitled to receive the Bonus shares BSE Limited National Stock Exchange of India Limited The Calcutta Stock Exchange Ltd Type of Security Record Date Purpose 540650 MAGADSUGAR 23935 Equity Sunday, June 30, 2019 Issue of Bonus shares, to be approved by shareholders by passing resolution through Postal Ballot result to be declared on or before June 23, 2019. Kindly take the same on your record. Thanking you, Yours faithfully For Magadh Sugar & Energy Limited S Subramanian Company Secretary.

7. Scrip code : 532819
Name : MindTree Limited
Subject : Updates on Open Offer
Axis Capital Ltd and Citigroup Global Markets India Private Ltd (“Managers to the Offer”) has submitted to BSE a copy of Corrigendum to the detailed public statement and the letter of offer with respect to the open offer by Larsen & Toubro Ltd (“Acquirer”) to the shareholders of Mindtree Ltd (“Target Company”)

8. Scrip code : 539917
Subject : Announcement under Regulation 30 (LODR)-Updates on Acquisition
This is to inform you that we have received a disclosure under Regulation 10(6) of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 (‘SAST Regulation’) from Mr. K Rahul Raju on behalf of his daughters, pursuant to Family Settlement, in respect of inter-se transfer of his shares amongst immediate relatives on June 15, 2019 and the same is enclosed herewith for your kind information and records. This being an Inter-se transfer of shares amongst immediate relatives, the same falls within the exemption under Regulation 10(1)(a)(i) provided under SAST Regulation. Further, the aggregate holding of the Promoter and Promoter Group before and after the above inter-se transaction remains the same.

9. Scrip code : 513023
Name : Nava Bharat Ventures Ltd
Subject : Corporate Action-Updates on Buy back
Sub: Buy back- daily report With reference to the subject cited above, we hereby submit the daily report pursuant to Regulation 18(i) of the SEBI (Buy Back of Securities) Regulations, 2018 regarding equity shares bought back by Nava Bharat Ventures Limited as on June 21, 2019.

10. Scrip code : 533166
Name : Sundaram Multi Pap Ltd.
Subject : Filing Of Scheme Of Amalgamation With NCLT
This is further to our communication dated January 12, 2019 wherein we had informed National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) (together referred to as the ‘Stock Exchanges’) about the Scheme which, inter alia, envisages amalgamation of the ECESL into and with SMPL and dissolution of the ECESL without being wound up, subject to requisite approvals, permissions and sanctions of regulatory and other authorities. We further wish to draw your attention to our communication dated May 07, 2019 wherein we had informed the Stock Exchanges about the receipt of the observation letters from the Stock Exchanges giving their ‘No Objection’ in terms of regulation 94 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, enabling the Company to file the draft Scheme with the National Company Law Tribunal.

11. Scrip code : 514236
Subject : Updates on Open Offer
TTL Enterprises Ltd has submitted to BSE a copy of Recommendations of the Committee of Independent Directors (“IDC”) of TTL Enterprises Limited (Formerly known as Trupti Twisters Limited) (“Target Company”) in relation to the Open Offer (“Offer”) made by Ardent Ventures LLP (“Acquirer”), to the Public shareholders of the Target Company (“Shareholders”) under Regulations 26(7) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and Subsequent Amendments thereto (“SEBI (SAST) REGULATIONS, 2011”).