Vedanta’s plan to demerge its businesses into separate entities could face hurdles from its minority shareholders and creditors, according to a report. The mining conglomerate announced plans to demerge five of its key businesses, including aluminium, oil and gas, and steel, into separate listed entities. However, the report suggests that the demerger could be delayed or derailed due to opposition from minority shareholders and/or creditors.
The Insolvency and Bankruptcy Board of India (IBBI) has proposed a two-part resolution plan structure to ensure the swift takeover of stressed firms without delay. The plan aims to prevent asset value erosion and streamline the resolution process. It also addresses the issue of distribution of resolution proceeds among stakeholders. The regulator has sought public comments on the proposed changes to regulations, including providing clarity on the entitlement of dissenting financial creditors and making the fair value of a stressed firm part of the information memorandum for potential suitors.
SAS shares plummeted by 95% after the airline announced a financial restructuring to avoid bankruptcy. The company will bring in new major shareholders and delist its stock from exchanges. Air France-KLM plans to integrate SAS flights into its own airlines to enhance its presence in the Nordic region.
Creditors of Jet Airways raise concerns over the source of funds deposited by the Jalan-Kalrock Consortium, which do not align with the resolution plan. Additional Solicitor General N Venkataraman questions the possibility of money laundering. Lenders request time to file a reply. Consortium representative alleges lenders refuse Jet’s ownership transfer.
