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

How PNB Rs 11,300 crore scam exposes the biggest flaws in the Indian banking system
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When frauds with a similar design happen on a repetitive basis, it becomes a matter of concern. It is regrettable that frauds based on letters of credit, supporting fake transactions of purchases, have happened in the past in the jewellery sector. Banks’ internal controls need to be strengthened. Fraud protection is essentially a duty of the bank. – Vinod Kothari. Read more

HC disallows parallel proceedings in NCLT and debt recovery tribunal
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While the company moved the NCLT on its own seeking to obtain this ‘moratorium’, the guarantors found it an alibi to seek relief from the earlier DRT case – Richa Saraf. Read More

Troubled times: 21 firms seek winding up on their own
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A number of cases the parent companies had been trying to invest in their subsidiaries but these investments had not taken off. – Vinod Kothari.   Read more