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Musk Giving Up on His Plan to Take Tesla Private, Patanjali Approaches NCLT et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Aug 25, 2018 1:13 PM 2 min read
Editorial

End of Day Wrap-up (Saturday / Aug 25, 2018) #RCom #IBC #Patanjali #RuchiSoya #India #China #Cryptocurrency #Bitcoin #Ethereum #Litecoin #Ripple #ElonMusk #Tesla #NCLT #AdaniWilmar #Transfin

Editor's Comment: RCom secures approval of overseas bondholders for its resolution plan on Friday. The company defaulted on a $300m bond last year, now due in 2020. Revised proposal comprises cash repayment of up to $118m and $55m of bonds, to be issued by the Global Cloud Xchange, an overseas subsidiary of RCom, resulting in a 42% haircut on original investment.

 

Loans of INR3.8L cr to 70 companies likely to come under resolution through the bankruptcy code. RBI's February 12 circular on restructuring bad loans mandated banks to take loan accounts unresolved for over 180 days to the NCLT. Deadline ends on August 27th. 

 

Patanjali Ayurved approached NCLT to challenge decision by Ruchi Soya's lenders to approve Adani Wilmar's INR6,000cr takeover offer. Hearing expected to take place on Monday, August 27th.

 

India exploring ways to maintain bilateral ties with Iran with US sanctions looming. Government officials in conversation with EU members to find a way out. India currently benefits from low shipping costs of oil supplies from the Persian Gulf vs. the US and a longer credit repayment period.

 

China cracks down further on cryptocurrencies, an year after imposing a wide-ranging ban on local exchanges and fundraising. Officials issued warnings to stores, hotels, and offices not to host any cryptocurrency related speeches, events, or activities. Sheng Songcheng, an adviser to the People's Bank of China, said government regulation will become even stricter.

 

Tesla CEO Elon Musk says he is giving up the plan to take the company private in light of shareholder objections. Announcement comes this Friday, 17 days after he tweeted his intentions to take the company private. He mentioned "it's clear that (going private) would be even more time-consuming and distracting than initially anticipated."