- Reliance Communications Ltd: Anil Ambani has resigned as director of Reliance Communications, the debt-ridden company said in a filing on Saturday. According to the filing, Ambani along with Chhaya Virani, Ryna Karani, Manjari Kacker, Suresh Rangachar have resigned as directors of RCom. Mr Manikantan V also tendered his resignation as a director and Chief Financial Officer of the Company earlier. The aforementioned resignations shall be put up to the committee of creditors of the Company for their consideration, the filing added. RCom, which is currently going through insolvency process, has posted a consolidated loss of Rs30,142cr for July-September 2019 due to provisioning for liabilities after the Supreme Court ruling on statutory dues.
- NBCC: State-owned NBCC is likely to take the responsibility of selling Rs1,750cr worth of unsold flats of Jaypee Infratech instead of offering them to lenders in its fresh bid to acquire the debt-laden realty firm through insolvency process, media reports suggested citing unnamed sources. NBCC and Suraksha Realty are likely to submit their revised offers on Sunday as sought by Interim Resolution Professional (IRP) Anuj Jain. A meeting of Committee of Creditors (CoC) has been convened on November 18 to discuss the resolution plans. Earlier, NBCC had offered 2,207 unsold flats worth Rs1,756cr to lenders, but bankers were reluctant to acquire these apartments.
- Future Lifestyle Fashions Ltd: Leading global investment firm Blackstone has invested Rs1,750cr in Kishore Biyani led Future group firm Future Lifestyle Fashions Ltd (FLFL). With this transaction, Blackstone will be the only financial partner in Ryka. As a part of the transaction, Blackstone has also acquired a 6% stake in FLFL through a block deal with Ryka. The fund would be utilised to "retire/pre-retire" all existing financial obligations of Ryka. FLFL is an integrated branded fashion company and operates in-house retail chains like Central, Brand Factory and Planet Sports along with a portfolio of 20 domestic and global fashion brands.
- Essar Steel Ltd: The Supreme Court (SC) has restored the primacy of the secured creditors over unsecured creditors by staying the National Company Law Appellate Tribunal (NCLAT) order in the Essar Steel insolvency case, where the appellate tribunal had said that operational creditors should be treated on par with the financial creditors. The apex court reversed the order of NCLAT and reiterated that the secured financial creditors have primacy over operational creditors. The SC also upheld the commercial wisdom of the committee of creditors in the matter of resolution and distribution of the proceeds of the resolution plan. It is a significant judgment for many reasons. It gives a final go-ahead to the resolution of Essar Steel case, one of the largest under the Insolvency and Bankruptcy Code (IBC). While the resolution plan of ArcelorMittal was approved in March this year by the National Company Law Tribunal (NCLT), the operational creditors in this case had appealed against the resolution in the NCLAT, which had put a stay on the resolution process.
- Wockhardt Ltd: A group of domestic strategic suitors and global private equity funds are vying to acquire select business divisions of pharma major Wockhardt, moneycontrol reported citing sources it did not name. These divisions have been put on the block to reduce the firm’s debt burden. Cipla, Dr Reddy’s, private equity fund Carlyle and Hong Kong-based investment fund PAG are among the suitors that are eyeing select business portfolios of Wockhardt. Wockhardt is expecting a valuation between Rs2,400-2,700cr as the combined valuation for the proposed sale of these segments. The company has attempted various routes in the past to raise funds and this is a fresh construct involving the sale of controlling stake and has attracted considerable interest.
- HCL Infosystems Ltd: HCL Infosystems announced that its subsidiary, HCL Learning has concluded the sale of entire shareholding of its wholly owned subsidiary HCL Insys, Singapore on November 15, 2019 to PCCW Solutions, Hong Kong for a consideration of SGD 57,628,787. The investment of HCL Insys, in its subsidiary, namely Nurture Technologies FZE (formerly known as HCL Infosystems MEA FZE) was excluded from the transaction along with the trading business carried out by HCL Insys which was carved out before transfer of the entity. Both were transferred to HCL Investments, a wholly owned step-down subsidiary of HCL Infotech.
- Asian Oilfield Services Ltd: Asian Oilfield Services has entered into a share purchase agreement dated November 15, 2019 for acquisition of 51% of equity share capital of Optimum Oil & Gas from its existing shareholder. The company currently holds 23% of equity share of Optimum. On completion of all closing formalities, Optimum will become a subsidiary of the company with 74% holding.
- Sterling & Wilson Solar: The promoters of Sterling and Wilson Solar (SWSL), Shapoorji Pallonji Group and Khurshed Yazdi Daruvala, failed to honour their commitments made during the initial public offering (IPO) in August and sought more time from the company’s board to repay loans worth Rs2,341cr citing unforeseen reasons including a liquidity crisis at the group level. SWSL’s management said in a conference call with investors on Friday that it was working on a revised payment schedule, but without specifying a time frame for the balance payment. SWSL has an asset-light business model and has negative working capital. So, it does not require debt for operational purposes. However, the company’s debt increased substantially on account of restructuring due to the demerger, whereby its debt swelled and it extended loans and advances to the group company.
- HIL Ltd: The company has added additional capacities and commenced the production of its CpVC, UpVC and SWR (Soil, Waste & Rain) Pipes at its plant located at Thimmapur, Telangana. This is in line with HIL's intention to expand the plumbing solutions business with an extended portfolio. HIL continues to diversify and invest from its traditional lines of business and expects healthy traction in the piping solutions, green roofing solutions and flooring solutions segments.
- Kwality Ltd: The National Company Law Tribunal (NCLT) has directed the lenders of Kwality Ltd to reconsider the revised Rs145cr offer by Haldiram Snacks to acquire the debt-ridden dairy firm. The Delhi-based bench of the tribunal has also extended the Corporate Insolvency Resolution period by another three weeks and directed the Committee of Creditor (CoC) to reconsider the enhanced offer. Earlier, the lenders of Kwality Ltd had rejected the Rs142 crore bid of Delhi-based Haldiram Snacks, which emerged as the sole bidder to acquire the debt-ridden dairy firm. Following which, Haldiram Snacks had revised its offer marginally and approached the NCLT with a plea that its latest resolution plan should be considered by the lenders as the offer is higher than the liquidation value.
All major US stock indexes posted all-time highs on Friday. The S&P 500 notched its sixth straight weekly gain, the index's longest streak in two years. The Dow Jones Industrial Average jumped slightly over 222 points or 0.80%, to close at 28,004.89. The S&P 500 rose 23.83 points, or 0.77%, to finish at 3,120.46, and the Nasdaq Composite jumped 61.81 points, or 0.73%, to close at 8,540.83.
White House economic adviser Larry Kudlow reportedly said that current negotiations between the two countries are ‘very constructive’, which was enough to drive stock markets up across the U.K., mainland Europe and most of Asia. Kudlow on Thursday said negotiators are getting close to an agreement, but that President Donald Trump wasn’t yet ready to sign off.