Bankruptcy in World Business

In 2008 bankruptcy rates were far more than any time since 2005. Federal court made it tougher to file bankruptcy. According to AACER, over a million American filed for individual bankruptcy which is 325 higher and companies filing for bankruptcy rose to 50% with around 64000 bankruptcies filed by companies.

This data shows that rate of bankruptcy filling is again going same way as it was back in 2005 and before it. So it can be said that 2005 bank law was not effective to change the underlying economic condition.

Majority of bankruptcies are individual but it is mainly a small business failure. It is noticeable that whenever people file for personal bankruptcy because of debt in business then it is also classifieds as personal filings. So it is also a point that the court law didn’t made a clear distinction about which is which.

"For small businesses that are in trouble," said White, "Filing under chapter 7 is the way to go." White said that the 2005 bankruptcy reforms have an exception that allows small business owners to avoid a "means test" that could bar them from chapter 7.

Expert says that it is good to take advice before filing for bankruptcy. It is not good to file bankruptcy just to shed business debt.

Mukesh Ambani Lost Rs 32,574 Crore while Anil Ambani Gained Rs 3,438 Crore

Today, in market capitalisation, companies led by Mukesh Ambani group lost Rs 32,754 crore while RNRL, Anil Ambani group firm gained Rs 3,438 Crore after the orders of Bombay High Court to RIL about supplying gas to ADAG firm at $ 2.34 per mmBtu.

The Mukesh Ambani group that includes Reliance Industries Ltd, Reliance Petroleum and Reliance Industrial Infrastructure Ltd lost this huge amount as stocks of all three companies settled with a loss of around 7%.

The total market capitalisation of Reliance Industries at the end of today's trading session stood at Rs 3.44 lakh crore which was Rs 3.71 lakh crore on June 12, Friday.

The orders of Bombay high court are major victory for Anil Ambani, when high court asked Mukesh Ambani's RIL to supply gas from KG Basin at USD 2.34 mmBtu to former's group firm.
This resulted in the increase of market capitalisation of RNRL from Rs 14,257 crore (as on Friday) to Rs 17, 694 Crore (today).

The other major gainers in the ADAG pack include Reliance Power which saw a gain of Rs 1,990 crore in its m-cap while, Reliance Infrastructure's m-cap surged by Rs 364.54 crore.
However, three other ADAG group firms-- Reliance Capital, Reliance Communications and Adlabs settled for in negative territory today and collectively lost Rs 3,365 crore.

According to Jagannadham Thunuguntla, SMC capital eqity head

"The positive momentum after the court ruling brought back encouragement to the ADAG pack. But if Reliance Industries goes to the Supreme Court it will start another long drawn battle. Keeping this in mind, the today's bull run in the ADAG pack looks short term"

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Sensex raised to 14,500 mark after GDP data

Friday morning proved very good for investors as BSE Sensex gains 2%. It is said that it is due to increased confidence of investors as economy of India grew at a higher rate than expected (5.8%)in March quarter.

Today at 11:35 A.M, BSE index was up by 2 % and reached at 14,286.27, with 28 stocks rising.

NSE index raise to 2.2 % and reached at 4,430.95.
This increase is an indication of investors confidence in market.