RBI discontinues LoUs and LoCs

Seems to be running ‘the Great Sparrow Campaign’

Vallari Dubey & Nikhil Jain

finserv@vinodkothari.com

The Reserve Bank of India (RBI) via a Notification dated March 13, 2018[1] has discontinued the use of Letters of Undertaking (LoUs) and Letters of Comfort (LoCs) for Trade Credits with immediate effect. Read more

Contradictory Order of NCLAT on Applicability of Moratorium on Guarantor’s Assets

Nicco Corporation’s liquidation: Lenders, workmen may have to accept huge haircut on claims

The reserve price for Nicco Corporation’s liquidation exercise has been pegged at Rs 232 crore, which is about 62 per cent of the company’s total dues admitted by the liquidator. This simply means the lenders and workmen – the second tier of the payment waterfall under any liquidation – will have to accept substantial haircut on their claims. Read more