INSUBCONTINENT EXCLUSIVE:
insolvency, with accounts such as Videocon, Sachet Infra and Lavasa underscoring the problem of indebtedness at the group level.
A panel on
group insolvency has submitted its report to the Insolvency and Bankruptcy Board of India (IBBI), proposing reforms in the legal framework
to address group insolvency
case of Videocon, the National Company Law Tribunal (NCLT) had ordered consolidation of assets and liabilities of 13 group entities
The Videocon Group operated as a single economic unit with inter- dependence and also had common lenders, where all 13 companies were
co-obligators.
In the case of Adel group of companies, the court suggested procedural coordination to ensure simultaneous proceedings with a
common resolution professional
Gupta, a resolution professional
sum-of-the-parts basis, with assessment of feasibility and ease of resolution in terms of compressed time schedule, investor interest, and
challenges and lead banks to classify standard accounts as NPAs, dragging standard cases into insolvency because of non-recovery of dues
after insolvency resolution.
