Synopsis: Several well-known Indian companies, including Future Retail, Go First, Sintex Plastics, GVK Energy, and Jaiprakash Associates, have entered insolvency in the last five years. Their cases reflect the impact of debt burdens, failed deals, operational disruptions, and weak cash flows across sectors such as retail, aviation, plastics, power, and infrastructure.
The past five years have witnessed several prominent Indian companies facing insolvency proceedings under the Insolvency and Bankruptcy Code, reflecting the financial difficulties faced by companies in various sectors. Companies such as Future Retail, Go First, Sintex Plastics Technology, GVK Energy, and Jaiprakash Associates, from various sectors such as retail, aviation, power, plastics, and infrastructure, have been facing difficulties in debt repayment, poor operational performance, and lack of recovery, thus being significant examples in this context.
Future Retail Ltd
Future Retail Limited, a leading retail operator in India’s organised retail industry, was admitted to insolvency proceedings in July 2022 by the National Company Law Tribunal (NCLT) after defaulting on its loan repayment obligations to Bank of India and other financial institutions.
The retail operator was facing financial difficulties after its planned sale to Reliance Industries Limited, amounting to Rs 24,700 crore, was put on hold following legal issues with Amazon. The sale was seen as a lifeline for the retail operator and financial institutions took the retail operator to the NCLT after defaulting on payment. The case was seen as one of India’s biggest retail insolvency cases.
Go First (Go Airlines India Ltd)
Go First was placed under voluntary insolvency after the company faced severe financial challenges in May 2023. The financial challenges were a result of the failure of Pratt & Whitney engines, which grounded a significant portion of the airline’s fleet. The company owed creditors, including major banks, over Rs 6,500 crore.
The grounding of the aircraft was a significant challenge for the company, and it was hard for the company to carry on with its operations. The company claimed that the engine suppliers were responsible for the financial crisis, which is a risk in the airline industry.
The creditors were concerned about the viability of the company, claiming there was little value left in the business. The case was a reminder of the fragile nature of the aviation industry, which is vulnerable to disruptions.
Sintex Plastics Technology Ltd
Sintex Plastics Technology Limited, a company that specialises in the manufacturing of plastic products and water storage products, was admitted into insolvency proceedings in February 2023 after a petition was filed before the National Company Law Tribunal (NCLT) by Asset Reconstruction Company (India) Limited (ARCIL). The petition was filed as a result of a default in payment of approximately Rs 250–350 crores, as per reports from credible sources.
The financial condition of the company had deteriorated significantly, as indicated by the company’s reduced revenues of nearly Rs 96 lakh and a loss of approximately Rs 144 crore in the company’s FY22 results, depicting low operational and business activities.
During the Corporate Insolvency Resolution Process (CIRP) of Sintex Plastics Technology Limited, the company was not able to attract a resolution plan that would be viable and satisfy the creditors. The Committee of Creditors (CoC) had a concentrated creditor base and rejected the offers due to the lack of value being recovered.
The National Company Law Tribunal ordered the liquidation of Sintex Plastics Technology Limited, a decision that was upheld by the National Company Law Appellate Tribunal (NCLAT).
GVK Energy Ltd
GVK Energy Ltd was admitted to insolvency proceedings by the National Company Law Tribunal (NCLT) in May 2025 after IDBI Bank filed an insolvency petition against it. The insolvency was initiated due to a default of around Rs 1,106 crore, as GVK Energy acted as a corporate guarantor for loans taken by its group company, GVK Power (Goindwal Sahib) Ltd.
The insolvency was triggered due to financial stress, which was initially experienced after the principal borrower defaulted in paying its debt, which was classified as a non-performing asset (NPA). Despite several notices being sent to GVK Energy, it failed to pay up as a corporate guarantor.
The insolvency of GVK Energy is an example of corporate guarantees, which can be risky for companies, as even indirect exposure to debt can trigger insolvency for companies. This is an example of how companies in the infrastructure and power sectors are facing financial stress due to various reasons, such as high leverage, project delays and more.
Jaiprakash Associates Ltd
Jaiprakash Associates Ltd, one of India’s largest infrastructure and cement companies, was admitted to insolvency in June 2024. The company has defaulted on debt of Rs 57,000 crore.
Jaiprakash Associates has been facing severe financial problems due to stalled projects, high debt, and poor cash flows. The diversified nature of Jaiprakash’s businesses, ranging from infrastructure to cement to real estate, has been one of the complexities in addressing Jaiprakash’s financial problems.
According to various reports, including one published in The Times of India, Jaiprakash’s insolvency process will help resolve massive debt through asset sales and debt restructuring. The Jaiprakash insolvency case underscores the risks associated with large infrastructure companies.
Written by Leon Mendonca
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