Tag: bankruptcy

Indian conglomerate Reliance Industries is considering buying out Revlon Inc in the United States, days after the cosmetics giant filed for bankruptcy, business channel ET Now reported on Friday, citing sources. Mukesh Ambani-led Indian oil-to-retail conglomerate is now mulling bidding for a cosmetics maker that filed for Chapter 11 bankruptcy protection in the United States. Reliance has pushed its way into the fashion and personal care space in recent months as it diversifies away from its mainstay oil business. It has already established a foothold in the telecom and retail sectors. Shares of Revlon jumped 20% to $2.36 in premarket trade following the report. Reliance was up 1.9% in the Mumbai market. Read more

D Subbarao, the former RBI Governor, feels that setting up a bad bank is not just necessary but unavoidable in the present circumstances when NPAs are likely to balloon and much of the resolution will have to take place outside the IBC framework. The standard advantage of a bad bank is that the entity taking a decision on the sale price is different from the entity accepting that price. Conflict of interest and corruption is avoided, and importantly, is seen to be avoided. The former RBI Governor noted that with the economy contracting by at least five percent this fiscal year, non-performing assets (NPAs) will balloon. Also, according to RBI's Financial Stability Report, gross NPAs of banks may rise to 12.5 percent by March 2021 under the baseline scenario, from 8.5 percent in March 2020. Read more