Private Equity

Lufthansa Management Could Consider Protective Shield Proceedings under Insolvency Law

German airline Lufthansa has informed that it might need protection from creditors if the shareholders of the company don’t approve the German-government backed bailout plan on the voting to be held on June 25. Lufthansa was among the first major European airlines to announce that the impact of COVID-19 pandemic on its finances would be difficult to manage. The airline announced initial jobs cuts and has indicated further job cuts even after the German government approved bailout package for the airline.

AAR Ruling on Tiger Global’s Exit in Flipkart, Wal-Mart deal could impact PE exits

Wal-Mart acquired controlling stake in Indian online retail leader Flipkart in 2018 and Tiger Global’s Mauritian arm sold its stake to Luxembourg based entity. However, Tiger Global managed to get exemption on taxes under India-Mauritius double tax avoidance treaty. Now, the Authority on Advanced Ruling in India has passed an order on the deal and Tiger Global could be in for tax trouble.

Private Equity Majors Closely Watching Companies in Distress

Private Equity majors are closely watching companies in distress, economic activity going bad, higher demand for money to fund expansion and they are ready to hunt for bargains. As per a report published by the Telegraph, nearly 70 percent of private equity firms said that they are evaluating deals to buy companies (or acquire majority stake) in distress. While economists are arguing over V-shaped or U-shaped recovery for the economy, private equity firms have set their eyes on the best bargain they can get for their money.

Jio Platforms surprises market as Big Investors grab 20 percent stake

Reliance Industries announced few months back about its plans to be debt-free by 2021. However, as per the current situation, the biggest listed company in Indian stocks markets, could reach that ambitious target before its planned date. Reliance group has been trusted by Indian investors for decades and it was popular among investors that no one has ever lost money in Dhirubhai Ambani’s companies (provided you invest medium or long term).