Creditors Financial News

Mt. Gox is expected to continue repaying creditors throughout 2024. This was revealed through emails showing the defunct exchange confirming user Bitcoin accounts ahead of the next repayment phase.

Creditors of now-defunct crypto exchange Mt. Gox have reported receiving fiat repayments for their trapped Bitcoin on the social media platform Reddit. 

Bankrupt digital asset exchange, FTX has paid hundreds of millions in legal fees in a few months sparking reactions as creditors seek to recover their losses.

More companies are turning to blockchain-based private credit as they seek financing amid increasing interest rates, leading to a significant surge in this sector. 

Celsius’ Bitcoin (BTC) mining plans face obstacles as a United States judge hints at a possible new vote to clear deviations.

The Committee of Creditors for IL&FS Tamil Nadu Power Company (ITPCL), a consortium of 17 banks led by Punjab National Bank, have turned down a proposal from the National Asset Reconstruction Co (NARCL) to acquire the debt of ₹9,000 crore and is moving ahead with a debt restructuring plan. During a meeting held last week, the lenders' committee rejected the government-backed bad bank's offer, a source said. Lenders felt that NARCL's offer of ₹4,700 crore in a 15:85 structure was below their recovery expectations through the debt restructuring process. Under 15:85, 15% of the amount is paid upfront while the remaining is paid by way of security receipts. «Lenders have rejected NARCL's offer as the company has cash of around ₹3,000 crore which will improve their recovery in case of restructuring,» a source said.

By Jing Bian, Xie Yu and Carolina Mandl

real estate player sought approval from its creditors to extend the maturity on a 3.9 billion yuan ($540 million) onshore private bond in a vote that ended on Friday night. The extension means the developer can repay the debt in instalments over three years, instead of meeting its obligations by Saturday. The bond is not publicly traded," the Reuters reports added.

Jet Airways promoter Naresh Goyal diverted Rs 9.46 crores out of a loan granted by Canara Bank to the airline to his wife, son and daughter, from 2011-12 till 2018-19, a remand application filed by the Enforcement Directorate said. Another Rs 1,152 crore was siphoned off as consultancy expense during those five years and salary expense of Goyal’s residential staff at Delhi and Mumbai was being borne by Jet Airways. ED also said that Goyal diverted Rs 2,547 crore showing a payment to its subsidiary JetLite and then wrote off the amount. The central agency on Friday night arrested Goyal and today produced him before a PMLA court in Mumbai. Amit Agarwal, then Chief Financial Officer of the company told ED during interrogations that these payments were directly approved by Goyal himself. “On being asked by the CFO, Naresh Goyal authoritatively replied that these payments were critical for the functioning of the company and there was no point in asking further questions,” the ED said. “As per the CFO, the finance department had no say about these payments and it was directly approved by Goyal through his secretary,” the agency added. A consortium led by State Bank of India of which Canara Bank is part owes Rs 6,000 crore to the airline which has now been marked as Non-Performing Asset (NPA) after the airline shut business in 2019. Lenders will lose 95% haircut on the recovery of the amount if a consortium manages to restart the airline.

Creditors of crypto lender Genesis and its parent company the Digital Currency Group (DCG) have opposed a proposed settlement deal leveling accusations of voter manipulation.

Digital Currency Group has reached a preliminary agreement with Genesis creditors to settle the claims by reimbursing 70-90% in USD equivalent to unsecured creditors.

Genesis Global and its parent company Digital Currency Group have reached an in-principle agreement with Genesis' creditors to resolve claims brought during the crypto lender's bankruptcy, a court filing showed on Tuesday. The plan could lead to a recovery of about 70%-90% in US dollar equivalent for unsecured creditors and about 65%-90% recovery on an in-kind basis depending on the denomination of the digital assets, according to the filing in the US bankruptcy court in the Southern District Of New York. The deal includes a payment of about $630 million in unsecured loans due in May 2023 and a $1.1 billion unsecured promissory note due in 2032, along with some other potential claims. Genesis filed for bankruptcy in January owing at least $3.4 billion to creditors and reached an agreement in principle on a restructuring plan, supported by Digital Currency Group, and its primary creditors, including Gemini, in February.DCG, owned by Barry Silbert, owns a portfolio of crypto companies in addition to Genesis, including crypto news and events site CoinDesk and New York-based Grayscale, a major digital asset manager.

Digital Currency Group (DCG), a major venture capital firm in the cryptocurrency industry, has reached an agreement in principle with creditors of its crypto lending subsidiary, Genesis.

The FTX bankruptcy saga has taken an alarming turn as daily legal expenses surge to a staggering $1.5 million, with creditors now sounding the alarm.

NEW DELHI : Operational creditors, who have previously aggressively initiated bankruptcy proceedings against clients for payment delays, are adopting a less confrontational stance of late. Data from the Insolvency and Bankruptcy Board of India (IBBI) for the June quarter shows that operational creditors, who had outnumbered financial creditors like banks by a wide margin in initiating bankruptcy action against defaulting firms in the five years till FY22, have for the first time fallen behind lenders in invoking the bankruptcy code during FY23.

Bankrupt crypto lender Celsius is set to hold a vote on a plan to sell its asset to Fahrenheit Group following the approval by a judge as the proceeding winds down.

Amid the approaching deadline for opting out of the current $22-million settlement with Block.one (B1), the EOS Network Foundation (ENF) has called on plaintiffs to drop the lawsuit.

FTX has outlined its intended reorganization plan, which will categorize claimants of the bankrupt exchange into specific classes and pave the way for it to become operational as an offshore entity. However, a body representing FTX customers said it is “extremely disappointed” by the plan. 

NEW DELHI : Jet Airways’ new management has to pay ₹350 crore to the Committee of Creditors (CoC), National Company Law Appellate Tribunal (NCLAT) was informed on Monday. The Jalan Kalrock Consortium (JKC) has to pay ₹350 crore before 31 August as a condition precedent. The next hearing is on 18 August.

Edelweiss Group on Sunday said mounting recovery efforts from defaulters are not just a right, but also an obligation of creditors. Acknowledging that its chairman and managing director Rashesh Shah has been named along with four others in the first information report (FIR) in connection with art director Nitin Desai suicide case, Edelweiss Financial Services maintained that it did not put any «undue pressure» on Desai.

Nitin Desai was found dead, Maharashtra Deputy Chief Minister Devendra Fadnavis on Thursday said the role a private lending firm, from which Desai had taken loan, would be probed to know whether he was charged high interest and if he was under stress. Speaking in the state legislative assembly, Fadnavis who holds the home department, said legal aspects on how Desai's N D Studio at Karjat near Mumbai can be preserved or taken over by the government will be examined. Desai, the creator of lavish sets for films such as «Jodhaa Akbar» and «Lagaan» as well as the popular TV quiz show «Kaun Banega Crorepati», was found hanging at his studio on Wednesday.