1. Cochin Shipyard Limited’s resolution plan for Tebma Shipyards Limited approved
- NCLT has approved Cochin Shipyard Limited’s resolution plan for Tebma Shipyards Limited.
- Rs. 65-crore resolution plan was approved by the Chennai bench of the National Company Law Tribunal (NCLT).
- Insolvency proceedings against Tebma Shipyard were accepted by the bench in September 2018.
- Jotun India Private Limited had filed a case for initiating Insolvency proceedings against Tebma Shipyard.
- The value of the resolution plan is lower than the liquidation value of nearly Rs. 89.09 crore.
- Supreme Court has held that the Insolvency and Bankruptcy Code does not require the value of resolution plan to be equal to liquidation value.
- Currently, there are 10 benches of NCLT. Its principal bench is located in New Delhi.
2. Lok Sabha approves Insolvency and Bankruptcy Code (IBC) (Second Amendment) Bill 2019
- Lok Sabha has passed Insolvency and Bankruptcy Code (IBC) (Second Amendment) Bill 2019.
- The bill aims to prevent the prosecution of new management for offences committed by earlier management of the company facing insolvency proceedings.
- The bill will fix the minimum number of allottees required for initiating insolvency proceedings for real estate projects at 10% of total allottees or 100 individual allottees.
- The bill will also protect going concern status of the companies facing insolvency proceedings.
- Earlier, National Company Law Appellate Tribunal has allowed implementation of JSW Steel’s resolution plan for Bhushan Power and Steel Ltd. and prevented prosecution of JSW Steel due to the attachment of latter’s assets by Enforcement Directorate.
3. RBI governor seeks currency swaps by international multilateral agencies
- RBI governor has said that international multilateral agencies such as IMF should launch currency swaps for helping countries affected by COVID-19 or coronavirus.
- RBI governor said that currency swaps would help liquidity pressures on countries. Liquidity pressures means the ability of a country to pay for its liabilities.
- Currency swaps help two parties in exchanging loans taken in one currency with the loan taken in a different currency.
- For example, a party in India can take a loan in Indian rupee at the interest rate applicable in India and give the loan to another party. In return, another party takes a loan in its domestic currency at the interest rate applicable in its domestic country and gives funds to first party.
4. RBI issues Yes Bank Reconstruction Scheme, 2020
- RBI has issued Yes Bank Reconstruction Scheme, 2020, after the superseding board of directors of Yes Bank.
- As per the scheme, the investor bank will be able to hold 49% shareholding in the reconstructed Yes Bank.
- The investor bank will not be able to lower its holding below 26% before three years since the date of investment.
- According to the scheme issued by RBI, tow directors nominated by investor bank will be appointed on the board of reconstructed Yes Bank.
- SBI has said that it is ready to invest and take part in the Reconstruction of Yes Bank.
- Earlier, RBI has to fix Rs 50,000 withdrawal limit per depositor due to the bad financial health of Yes Bank.
- Yes Bank is a Mumbai-based bank founded in 2004, and its founder is Rana Kapoor.
5. Sonia Syngal to be CEO of Gap Inc
- Gap Inc has announced Sonia Syngal as its Chief Executive Officer (CEO).
- Sonia Syngal will take the place of interim CEO Bob Fisher from March 23 onwards. She was the head of the Old Navy brand of Gap Inc.
- Bob Fisher will quit as chairman of Gap Inc.
- Gap Inc also announced that Bobby Martin would also be its executive chairman. Bobby Martin is currently a member of the board.
- Elizabeth Smith and Amy Miles will become members of the board of Gap Inc.
- Gap Inc is an American clothing and accessories retailer.
Multiple Choice Questions (MCQs)
1. Recently, the Chennai bench of NCLT has approved Cochin Shipyard Limited’s resolution plan for
- Bharati Shipyard Limited
- Tebma Shipyards Limited
- ABG Shipyard Limited
- Timblo Drydocks Private Limited
- Hindustan Shipyard Limited
2. Recently, Lok Sabha has approved Insolvency and Bankruptcy Code (IBC) (Second Amendment) Bill 2019. How many schedules are contained in Insolvency and Bankruptcy Code, 2016 (IBC)?
3. COVID-19 or Severe Acute Respiratory Syndrome Coronavirus 2 (SARS-CoV-2) was first reported in
4. Which of the following banks has expressed its readiness to take part in RBI’s Yes Bank Reconstruction Scheme, 2020?
- Axis Bank
- Union Bank
- Bank of Baroda
5. Who will become the next Chief Executive Officer (CEO) of Gap Inc.?
- Bob Fisher
- Bobby Martin
- Elizabeth Smith
- Amy Miles
- Sonia Syngal