March 30, 2020
In a move aimed at smooth resolution of insolvent firms, the Insolvency and Bankruptcy Board of India (“IBBI”) amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”) on March 29, 2020.
Due to the declaration of 21 days lockdown by the Government of India with effect from 25th March, 2020 as a measure to contain the spread of Covid-19, it has become extremely hard for the insolvency professionals to continue to conduct the process, for members of committee of creditors to attend the meetings, and for prospective resolution applicants to prepare and submit resolution plans, during the period of nationwide lockdown.
March 26, 2020
COVID-19 may change the restructuring playbook and may make achieving out-of-court restructurings more difficult. READ MORE
March 25, 2020
Thoughts from an experienced restructuring attorney based on prior slowdowns on how to prepare for the economic fallout from the coronavirus. READ MORE
March 25, 2020
The Union Finance & Corporate Affairs Minister, Government of India, Ms. Niramla Sitharaman, in her interactions with the press yesterday, i.e., on March 24, 2020, has announced multiple relaxations to statutory and regulatory compliances under various legislations viz., the Companies Act, 2013 (“CA2013”), Limited Liability Partnership Act, 2008 (“LLP Act”), Insolvency and Bankruptcy Code, 2016 (“IBC”), Income Tax Act, 1961, the Goods and Services Tax legislations, Customs Act, 1962 etc. The complete press release vis-à-vis all measures announced can be accessed at http://pib.nic.in/newsite/PrintRelease.aspx?relid=200639.
March 24, 2020
The COVID-19 pandemic has and will continue to disrupt “business as usual” for most businesses in the United States and around the world. Even the most well-capitalized companies are likely to see constrained liquidity, and for those which lack significant cash reserves, lease and loan defaults are of primary concern. Additionally, these obligations often include personal guarantees for the businesses’ principals and compound an already difficult situation. In the current environment, all industries are feeling the heat, particularly in the retail, restaurant, travel, hospitality, entertainment and manufacturing sectors. Simply put, with large numbers of consumers, customers and employees “sheltering in place,” cash flow shortages are everywhere and have both lenders and borrowers wondering what to do to protect themselves and scrambling to review financial covenants and other loan document provisions regarding rights and remedies. Read more…
March 24, 2020
In the midst of the shutdown of businesses all over India to contain the spread of the highly contagious Covid-19 infection, Finance Minister Smt. Nirmala Sitharaman today addressed a press conference on various statutory and regulatory compliance issues and announced a slew of measures for providing relief amid the pandemic outbreak.
The brief highlights of the announcements made by the Finance Minister:
March 24, 2020
The medium to long term financial effects of Coronavirus are yet to unfold, but the magnitude is already anticipated to be huge. Many countries across the world are announcing financial packages for businesses. India is also on the track to take a decision on relief packages.
With widespread lockdowns, the coming months are expected to witness a series of defaults by many viable businesses, and in this situation, we need to protect viable Indian businesses from landing up in our bankruptcy tribunals, for no fault of their promoters.
March 23, 2020
Today the legislator of Latvia has adopted a special temporary law on measures to prevent and manage state threats and consequences of the spread of COVID-19.
The law provides for the following measures:
General: The Cabinet of Ministers shall determine sectors that have suffered crisis costs (sectors affected by the crisis) due to the spread of COVID-19 and that are therefore subject to measures and special support mechanisms, as well as to set criteria, how to determine those who shall receive the same special support in other sectors;
March 20, 2020
As a knee-jerk reaction, when a vendor is considering bankruptcy clients may immediately seek to re-source and handle the matter internally. However, that option may not exist. READ MORE
March 19, 2020
The Aviation (Enforcement and Recovery) team has been advising clients on issues arising from the current crisis. Three main themes emerge from the current challenges in the airline sector:
1.) Airline insolvency risk. A number of leasing companies have claims for unpaid rent and maintenance rent. These claims can be pursued by:
- applying security deposits and enforcing other security; and/or
- issuing proceedings in the High Court – which will effectively come to halt if the airline then goes into a formal insolvency process; and/or
- Instigating insolvency proceedings against the airline; and/or
- Exercising proprietary rights such as arresting and taking possession of the aircraft, with the assistance of a court order or injunction in the relevant location.