WEEKLY CORPORATE BITES (21.08.2020 to 27.08.2020)

Ø Key update of this week

1.     MCA maiden success in recovery of $3.25 million in Nirav Modi case from USA.

Punjab National Bank Ltd. (PNB) has informed the Ministry of Corporate Affairs (MCA) which spearheaded the corporate governance litigation in a foreign jurisdictional Court, that it has received $ 3.25 million (equivalent of Rs. 24.33 crore) as the first tranche of recoveries. Upon liquidation of the debtors’ assets by the US Chapter 11 Trustee, a sum of $ 11.04 million (equivalent of Rs. 82.66 crore) is available for distribution to unsecured creditors including PNB. Further recovery there from is subject to other expenses and settlement of claims of other claimants.

2.     Overseas direct investment norms to be made simpler, based on principles

The regulator also intends to introduce late submission fee for delayed reporting of overseas direct investments (ODI) by Indian parties and resident Indians.

3.     Private investors plan to expand gas pipeline network amid complex policies

Indian and foreign investors have shown interest in the country's plans to expand its domestic gas pipeline network but remain worried about steel capacities at home and the complex pricing policies

4.     ByteDance investors seek to use stakes to finance TikTok bid: Report

ByteDance has been in talks to divest TikTok's North America, Australia and New Zealand operations to potential acquirers, including Microsoft Corp and Oracle Corp

5.     Zomato raises Rs 184 cr from existing investor; eyes funds from Temasek

The infusion is expected to help Zomato compete with Tencent-backed Swiggy and e-commerce giant Amazon, which recently forayed into food delivery

  

6.     MSME promoters likely to stay in charge during resolution process

However, all key decisions will have to be finalised by CoC; govt is also considering amending IBC to bring in the pre-packed scheme for all stressed companies

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