Vodafone Idea woes: Aditya Birla Group won’t face fund or bid curbs

Mumbai: The Aditya Birla Group will not be denied bank funds or be barred from bidding for insolvent companies if Vodafone Idea were to default and enter bankruptcy proceedings as there were no corporate or promoter guarantees issued by the conglomerate to the telecom firm, say bankers.

When a company faces insolvency proceedings, promoters are unable to raise funds for other businesses, and also they are not eligible to bid for any bankrupt business under Section 29A of the Bankruptcy Act. With effect from December 1, guarantors to any insolvent business too face bankruptcy proceedings.