HC denies any relief to Essar Steel in insolvency case

Banks can now begin insolvency proceedings against Essar- India Tv

Banks can now begin insolvency proceedings against Essar- India Tv

In a big boost to banks and the Reserve Bank of India's newfound resolve against bad loans, the Gujarat High Court on Monday dismissed a petition by Ruias-led Essar Steel against the insolvency proceedings initiated against it by banks under the National Company Law Tribunal (NCLT).

On its part, the RBI contested in the court that it is not singling out Essar Steel for insolvency proceedings, and that all the big loan defaulters with outstanding loans above Rs 5,000 crore would be subject to the same.

The company had argued that it should not be treated at par with other eleven accounts, as while these accounts are now closed, Essar Steel is still doing well with an annual turnover of Rs 20,000 crore.

7dead as heavy rains lash several parts of Gujarat
Air Force and the National Disaster Response Force are helping the state administration in relief and rescue operations. Rajkot Municipal Commissioner Banchhanidhi Pani said, adding they have alerted citizens not to venture out of houses.

According to reports, Justice SG Shah passed an oral order saying no relief will be granted to Essar. Standard Chartered Bank had also moved the NCLT against Esaar. The apex bank has issued a release on June 13 directing the banks to start insolvency procedure against a dozen stressed companies including Essar. However, Essar continued to raise objection on being clubbed with other 11 NPA accounts, whereas it was in discussion with banks for a financial restructuring.

The Gujarat High Court's order clears the way for no further challenges by any of the companies going to insolvency courts on the grounds made by Essar Steel. Shares of most of the nine listed companies out of the 12 on the RBI's list are on a downtrend since then.

He had said the company was challenging RBI's directive, not SBI's decision, as the state bank was mandated by the central bank to file a case with NCLT against the firm by issuing that circular.

What to expect from GOT characters who made it to Season 7
Turner won't spill the beans on the possibility of a Sansa/Arya reunion in season 7 , but if it did happen, she would be thrilled. Given that Jon and Sansa will be in close proximity for at least the beginning of the next season, expect tension and lots of it.

RBI counsel Darius Khambata said the steel firm had suppressed facts and misled the court to get a favourable decision. Instantly acknowledging this error, the RBI told the Gujarat High Court that it would withdraw this line from the press release, and did so by the means of a corrigendum.

Cracking down on bad loans, the RBI last month identified 12 accounts for insolvency proceedings with each of them having over Rs 5,000 crore of outstanding loans, accounting for 25 per cent of total non-performing assets (NPAs) of banks. Meanwhile, bankruptcy proceedings have also been filed on Essar Steel Ltd and Monnet Ispat and Energy Ltd.

HS2 seeks guarantee on crisis-hit Carillion
Interim chief executive Keith Cochrane said: "We are moving forward quickly with the actions outlined last week". EY will focus on reducing debt costs and boosting cash collection, according to a statement on Monday.

Recommended News

  • Kittel wins crash-marred Stage 11, Froome stays safe

    Kittel wins crash-marred Stage 11, Froome stays safe

    I might have been in yellow and then lost five minutes because everyone attacks the hell out of me", he said. There was a true feeling that the race was going to spin out of control. "Everything was good on our side".

    Farmers National Banc Corp. (FMNB) Lowered to Hold at Zacks Investment Research

    About Farmers National Banc Corp . "(NASDAQ:FMNB) Stock Price" was posted by Markets Daily and is owned by of Markets Daily. Tower Rech Cap Limited Liability (Trc) invested in 217 shares or 0% of the stock. 427,072 are owned by Vanguard Group Inc.

    Flextronics International Ltd. (FLEX) Insider Francois Barbier Sells 110126 Shares

    The technology company reported $0.29 earnings per share for the quarter, hitting the Zacks' consensus estimate of $0.29. Flextronics International (NASDAQ:FLEX) previously released its periodic earnings reports on Early Thur, Apr 27th.
  • Egypt says 1 killed, 50 injured in clashes on Nile islands

    Egypt says 1 killed, 50 injured in clashes on Nile islands

    The Egyptian government launched a program on demolition of illegal constructions in order to vacate the state-owned lands. In May, President Abdel Fattah al-Sisi ordered a campaign to recover state-owned land which had been encroached upon.
    10 killed in Nigeria mosque attack

    10 killed in Nigeria mosque attack

    It was gathered that the attackers crossed the trenches in an attempt to enter the town at about 10:15pm on Sunday. The News Agency of Nigeria reports that the attack occurred at Londonciki-Simari area of Maiduguri .
    Is Now the Time to Buy iShares S&P/ASX 20 ETF

    Is Now the Time to Buy iShares S&P/ASX 20 ETF

    After a recent check, the 14-day RSI is now at 58.47, the 7-day stands at 56.93, and the 3-day is sitting at 53.42. Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock.
  • Unwanted Chelsea midfielder loaned out for fifth time

    Unwanted Chelsea midfielder loaned out for fifth time

    PSV announced the deal in a statement which read: "PSV and Chelsea have reached an agreement on a transfer of Marco van Ginkel ". As is often standard practice, Van Ginkel also signed a contract extension with Chelsea , tying him to the club until 2020.

    Hornbeck Offshore Services (HOS) Earning Somewhat Positive Press Coverage, Analysis Finds

    The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. Four equities research analysts have rated the stock with a sell rating and three have assigned a hold rating to the company.
    Arena Makes 6 Changes Ahead of Gold Cup Quarterfinals

    Arena Makes 6 Changes Ahead of Gold Cup Quarterfinals

    Bedoya is expecting the birth of his second child to take place this week and thus was always expected to depart. The six replacements are Tim Howard, Jesse Gonzalez , Michael Bradley , Nagbe, Altidore, and Clint Dempsey .
  • Michel Barnier: Brexit talks will get to 'heart of the matter'

    Michel Barnier: Brexit talks will get to 'heart of the matter'

    The Brexit Secretary said progress had to be made this month on a deal for reciprocal rights for citizens. Hammond is in favour of a long transitional departure to avoid damaging the economy.

    Pyongyang might have made more plutonium

    That makes it attractive to some state-owned Chinese steelmakers looking to reduce costs, she said. The same goods sold in North Korean markets, or exported to China, are produced differently.
    Sergio Aguero Chelsea Transfer Approved by Pep Guardiola

    Sergio Aguero Chelsea Transfer Approved by Pep Guardiola

    Interestingly, it's added that Conte won't even face any resistance in his pursuit of the Argentina global . Aguero has scored an incredible 169 times in just 253 appearances during six years at City .

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.