Thursday, October 28News That Matters
Shadow

Tag: creditors

Complete IBC suspension for defaults may hurt creditors

Complete IBC suspension for defaults may hurt creditors

Finance
The government's ordinance giving a perpetual holiday from the Insolvency and Bankruptcy Code (IBC) for defaults between March and September has left banks and investors in a lurch as it leaves them with only recovery options which have proven to be ineffective. Lawyers say that a complete suspension of IBC cases for defaults occuring during the six month period is regressive and takes away the fear of default from promoters. Particularly hit will be investors in market intruments like bonds, external commercial borrowings (ECBs) and trade credits which have recourse only to the delay prone ebt recovery tribunals (DRTs). Moreover, the illconceived ordinance could put India back on eyes of international investors who bet on legal frameworks for recoveries and hit fund raising through bond s...
Debenhams moves to protect itself from creditors in virus crisis

Debenhams moves to protect itself from creditors in virus crisis

Business
Debenhams has filed a notice of intent to appoint administrators as it moves to shield itself from creditors amid the coronavirus crisis.Sky News reported on Friday how the company's owners remained confident in its future, despite the shutdown of its 142 stores because of social distancing restrictions, though the chain was exposed on a number of fronts including rent bills. The chief problem was the threat of suppliers of stock - inventory worth hundreds of millions of pounds that is currently not needed - chasing the company to pay its bills on time. Image: Debenhams had already closed a number of under-performing stores this year following a rescue deal with landlords The retailer said on Monday: "This move will protect Debenhams ...
Toys R Us reaches rescue deal with creditors

Toys R Us reaches rescue deal with creditors

Business
Toys R Us has been saved from collapse after creditors supported a rescue deal that will keep three quarters of its stores open.The Pension Protection Fund (PPF) had initially threatened to block the company's plan in a move that could have forced the country's biggest toy chain into administration just ahead of Christmas - placing 3,200 jobs at risk.But, following a series of talks, the PPF said it had secured acceptable commitments from Toys R Us that enabled it to support the so-called Company Voluntary Arrangement (CVA).Sky News had reported exclusively on the ebbs and flows in the negotiations in the days and hours ahead of the meeting - with the result on a knife-edge until the announcement.The firm had said early this month that it wanted to shut 26 stores - a quarter of its UK tota...
Leyton Orient winding-up petition dismissed at High Court after creditors paid in full

Leyton Orient winding-up petition dismissed at High Court after creditors paid in full

Sports
Leyton Orient's Matchroom StadiumMonday, June 12, 2017A winding-up petition against Leyton Orient has been dismissed at a High Court hearing.Controversial owner Francesco Becchetti was given until Monday to pay off debts or sell the club following a previous hearing in March.A lawyer representing Orient told Registrar Sally Barber that all debts had been paid at a Bankruptcy & Companies Court hearing in London and she dismissed all bids to have the club wound up.Another judge had examined the case in March.Registrar Nicholas Briggs had adjourned applications.Bosses at an events management firm had told Registrar Briggs they were owed about £18,000.He had said he would adjourn Central Circle Event Management's application after hearing of plans to inject £1million into the O's.The judge...