The DC notes that Mr. Viswanathan Sankaran was present before the AA on 17.09.2021 while order for conducting CoC meeting by next week was passed. Hence it may be said that he was aware of direction by the AA. The DC further notes that representative of Canara Bank vide email dated 07.10.2021 requested to prepone the meeting to 16.10.2021 or postpone it to 21.10.2021 or 22.10.2021 on behest of his unavailability due to personal engagement. In light of above, DC is inclined to take a lenient view.
In view of the forgoing discussion, the DC finds that Mr. Viswanathan Sankaran is in violation of regulation 18 of CIRP Regulations, clauses 1, 2, 13 and 14 of the Code of Conduct for failing to convene CoC meeting on the request of FC.
The DC, in exercise of the powers conferred under section 220(2) of the Code read with regulation 13 of the IBBI (Inspection and Investigation) Regulations, 2017 hereby suspends the registration of Mr. Viswanathan Sankaran having Registration No. IBBI/IPA-001/IP-P00538/2017-2018/1096 for a period of one year.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
(Disciplinary Committee)
Order No. IBBI/DC/150/2023 Dated: 14th February, 2023
In the matter of Mr. Viswanathan Sankaran, Insolvency Professional (IP) under section 220 of the Insolvency and Bankruptcy Code, 2016 read with regulation 13 of the IBBI (Inspection and Investigation) Regulations, 2017.
This Order disposes of the Show Cause Notice (SCN) No. IBBI/IP/INSP/2022/115/4057/614 dated 20.09.2022 issued to Mr. Viswanathan Sankaran, R/o 106th A Cross, Ramaswamy Palya Vignana Nagar, Bangalore, Karnataka-560037 who is a Professional Member of the Indian Institute of Insolvency Professionals of ICAI (IIIP-ICAI) and an Insolvency Professional (IP) registered with the Insolvency and Bankruptcy Board of India (IBBI) with Registration No. IBBI/IPA-001/IP-P00538/2017-2018/10963.
1. Background
1.1. The Hon’ble NCLT, Bengaluru Bench (AA) vide order dated 08.03.2021 admitted the application under section 9 of the Insolvency and Bankruptcy Code, 2016 (Code) filed by Smt. Yogitha Vijaykumar, Proprietor of M/s Shree Ratna Farm Products for initiating Corporate Insolvency Resolution Process (CIRP) of the Maylari Agro Products Ltd. (CD) and appointed Mr. Viswanathan Sankaran as Interim Resolution Professional (IRP). Mr. Viswanathan Sankaran was replaced by Ms. Shirley Mathew as Resolution Professional (RP) vide the AA’s order dated 30.11.2021.
1.2. The IBBI, in exercise of its powers under section 218 of the Code read with regulation 3(2) and 3(3) of the IBBI (Inspection and Investigation) Regulations, 2017 (Inspection Regulations) appointed an Inspecting Authority (IA) to conduct the inspection of Mr. Viswanathan Sankaran. In compliance with regulation 6(1) of Inspection Regulations, IA shared the Draft Inspection Report (DIR) with Mr. Viswanathan Sankaran on 03.06.2022 to which response was received on 17.06.2022. Thereafter, IA submitted the Inspection Report (IR) on 27.06.2022 in accordance with regulation 6(4) of the Inspection Regulations.
1.3. The IBBI issued the SCN to Mr. Viswanathan Sankaran on 20.09.2022, based on the findings in the inspection report in respect of his role as an IRP in the CIRP of CD and material available on record. Mr. Viswanathan Sankaran submitted his reply to SCN vide email dated 29.09.2022.
1.4. The IBBI referred the SCN, response of Mr. Viswanathan Sankaran to the SCN and other material available on record to the Disciplinary Committee (DC) for disposal of the SCN in accordance with the Code and Regulations made thereunder. Mr. Viswanathan Sankaran availed opportunity of e-hearing before the DC on 13.01.2023.
1.5. The DC has considered the SCN, the reply to SCN, submissions of Mr. Viswanathan Sankaran, other material available on record and proceeds to dispose of the SCN.
2. Alleged Contraventions, Submissions, Analysis and Findings
The contraventions alleged in the SCN and Mr. Viswanathan Sankaran’s written and oral submissions thereof are summarized as follows.
3. Contravention-I
Irregularity in appointment as RP.
3.1 The Board observed from the notice dated 03.04.2021 for the 1st CoC meeting held on 09.04.2021 that one of the matters to be discussed and voted upon during the meeting was appointment of IRP as RP or replace the IRP by another RP. It is further noted that the minutes of the said 1st CoC meeting record that the members have unanimously resolved to appoint Mr. Viswanathan Sankaran as the RP at a remuneration of Rs. 4 lakhs. It is, however, observed that one of the FCs, i.e., Canara Bank having 84.6% voting share vide its letter dated 26.04.2021 objected to his appointment as the RP and even requested him to conduct the next CoC meeting at the earliest. The said letter further reveals that the Canara Bank denied having voted on any agenda in the 1st CoC meeting. On his failure to consider their request, Canara Bank filed an application before the AA seeking replacement of Mr. Viswanathan Sankaran.
3.2 It was, thus, evident that Mr. Viswanathan Sankaran has recorded the minutes of 1st CoC meeting by intentionally misrepresenting the facts with a mala fide intention. Mr. Viswanathan Sankaran further continued with this misrepresentation by filing a memo dated 12.04.2021 before the AA intimating it about his appointment as a RP even though no such resolution can be said to be passed, in view of denial of the Canara Bank to have voted in favour of this resolution. It is also noted that he did not pay any heed to the request of Canara Bank to convene 2nd meeting of the CoC which he was bound to do as per regulation 22(2) of the Code as Canara Bank was having 84.6% voting share.
3.3 It was further observed that vide order dated 30.11.2021 passed in IA No. 276 of 2021, the AA allowed the prayers of the Financial Creditor (FC) Canara Bank for his replacement and even observed in their order that he failed to conduct the CIRP in accordance with the Code and Regulations made thereunder.
3.4 In view of the above, the Board held the prima facie view that he has, inter alia, violated section 22(2) of the Code read with clauses 1, 2, 3, 5, 13 and 14 of the Code of Conduct as specified in the First Schedule of IBBI (Insolvency Professionals) Regulations, 2016 (Code of Conduct).
Submissions
3.5 Mr. Viswanathan Sankaran submitted that the two orders passed by the AA on 30.11.2022 along with the allegations in the SCN are presently under appeal with Hon’ble National Company Law Appellate Tribunal (NCLAT), Chennai Bench, and are therefore sub judice.
3.6 Mr. Viswanathan Sankaran submitted that the alleged irregularity under section 22(3) of Code relies primarily on a single piece of evidence, a letter dated 26.04.2021, which states in para 1 of the letter that “Canara Bank as a member of CoC has not affirmed any of these agendas as such our voting to be treated as “negative.”
3.7 Mr. Viswanathan Sankaran submitted that on the basis of this single piece of evidence it has been concluded that he has recorded the minutes of the 1st CoC meeting as “intentionally misrepresenting the facts with malafide intentions ..and further continued by filing a memo dated April 12, 2021 before AA intimating it about his appointment as a RP even though no such resolution can be said to be passed in view of the denial of Canara Bank to have voted in favour of this resolution.” The SCN on the basis of this single piece of evidence arrives at the conclusion that nothing whatever happened in the 1st CoC meeting and whatever has been recorded by him in the minutes is a fabrication. The answers to the questions raised below form an effective rebuttal for the abovementioned allegation in the SCN.
i) The notice of the meeting was given on 03.04.2021 with the agenda, among others, of his appointment as an RP or his replacement with another RP. If Canara Bank wanted to replace him with another from their panel why was no notice given to him with such a proposal and the consent of the proposed RP either before or during the CoC meeting 6 days later?
ii) The letter on which the SCN relies has been written on the 26.04.2021, 23 days after the notice, 17 days after the CoC, 15 days after the minutes of the meeting was given to them and 14 days after his filing of the memo with NCLT. What was Canara Bank doing during this long interim period?
iii) The letter has been written by one Mr. TN Jayaprakash, DGM Recovery of Canara Bank, a person who is not the designated authorised representative of Canara Bank and more importantly one who was not present in the CoC meeting and therefore cannot know anything about what happened in the meeting except through the minutes and through heresy. If he says anyway that ‘Canara Bank voted in the negative’ why is the letter silent on what exactly happened at the meeting?
iv) Chandrika, AGM, was the authorised representative of Canara Bank who attended the meeting and voted thereon on behalf of Canara Bank. If Mrs. Chandrika voted in the “negative, did not agree with the minutes and felt that it was fabricated, why has she not said anything about the 1st CoC to him or to NCLT or to the Board so far?
v) Karnataka Bank is a bank of as equal repute as Canara Bank. The minutes were sent to them as well as other members of the CoC (including Canara Bank) within 48 hours of the conclusion of the meeting on the 11.04.2021 as required under Regulation 24(7). If there had been any misstatement in the minutes or if the minutes were not a true representation of the genuine proceedings of the CoC, why has Karnataka Bank not said anything about it so far?
vi) It should also be noted that inspite of the letters of 26.04.2021 and 06.05.21 ‘negating’ or questioning the minutes of the 1st CoC meeting, the authorised representative of Canara Bank in the 2nd CoC meeting did not raise this issue – i.e. the validity of the 1st CoC decisions in the 2nd CoC meeting, a copy of which has been filed by them before the AA as a memo on 15.11.2021. The only possible reason for this is that a third party bank, Karnataka Bank, represented by the same member who attended the 1st CoC meeting, Mr. RK Goli, was present in the meeting and he will not support a lie by Canara bank.
Mr. Viswanathan Sankaran submitted that it should be clear from the above observations that the letter of 26.04.2021 is clearly an afterthought and based on lies. It also follows that the 1st CoC was a valid one and happened as recorded in the minutes.
3.8 Mr. Viswanathan Sankaran submitted that the SCN further states that its allegation of fabrication of the minutes of the 1st CoC minutes based on the letter of 26.04.2021 is buttressed by the order of 30.11.2021 of the AA which approved his replacement with the observation “in view of the clear mandate of Section 27 of the IBC and in view of the failure in conducting the CIRP in accordance with the code and regulations made thereunder, the instant IA is allowed.” A few questions arise from this observation:
i) The replacement of Mr. Viswanathan Sankaran as an RP has been made under section 27(2) of the Code based on the voting in the 2nd CoC meeting in which Canara Bank with a vote share of 84.6% voted for his replacement and Karnataka Bank with a vote share of 15.4% voted for his continuing as an RP. In the CoC minutes, filed by Canara Bank with the AA on 15.11.21, the reason for replacement is stated in the CoC minutes as follows: “when pressed for the grounds on which they (Canara Bank) wanted .. a replacement they (Canara Bank) stated “There are No Grounds” On what basis has the AA made the cited allegation as a rationale for replacement?
ii) The AA has quoted the entire section of 27 the Code in para 8 of the order before proceeding for the replacement order under para 9. Section 27 deals specifically with the “Replacement of the Resolution Professional by the Committee of Creditors”. Does this not automatically imply that the AA has accepted the decision of the CoC in its first meeting on 09.04.2021 to approve his appointment as a RP?
iii) The entire order made by the AA on IA 276 is centred on section 27 of the Code which deals specifically with the “Replacement of the Resolution Professional by the Committee of Creditors”. Is there not a contradiction then in the court referring to his right through the order as an IRP?
It will therefore be incorrect for the SCN to take the observations made in the court order of 30.11.21 as a corroboration of its interpretation and conclusions from the letter of 26.04.2021.
3.9 Mr. Viswanathan Sankaran finally submitted that for any allegation that the 1st CoC meeting did not take place as stated by him, a statement of denial, and more importantly, an affidavit of what exactly took place in the meeting will have to be produced from the third parties who actually attended the meeting, i.e. Mrs. Chandrika, AGM, Designated representative and head of South End Branch, Bangalore, Canara bank; Mr. RK Goli, Tumkur Branch, Karnataka Bank, Mr. Mahesh, Suspended Director, Mayalari, Mr. Rao, CFO, Maylari. Since no affidavit exists, therefore they have not been produced and submitted to the AA or the Board so far to support the allegation of the Recovery Section officers of Canara Bank of his fabricating the minutes of the meeting in their letters of 26.04.2021 and 06.05.2021. It follows therefore that the observations and the conclusions drawn therefrom of the SCN are incorrect and there is therefore no violation of section 22(3)(a) of the Code. It also follows that the 1st CoC meeting is valid and in order. He was duly appointed as a Resolution Professional in that meeting and that he is entitled to the remuneration and expenses as approved in the meeting till the time of his handing over charge to the new RP.
Analysis and Findings
3.10 The DC notes that first meeting of CoC was conducted on 09.04.2021 which was attended by Mrs. Chandrika, representative of Canara Bank, Mr. R K Goli, representative of Karnataka Bank, directors of suspended board of CD and Mr. Viswanathan Sankaran. The agenda was put up for appointment of Mr. Viswanathan Sankaran as RP or replace him with another RP. The minutes of 1st CoC meeting states that CoC members resolved to appoint Mr. Viswanathan Sankaran as RP at a remuneration of Rs. 3 Lakhs per month plus taxes as applicable.
3.11 Subsequently, Mr. TN Jayaprakash, Deputy General Manager of Canara Bank wrote letter dated 26.04.2021 to Mr. Viswanathan Sankaran stating that Canara Bank has more than 84% voting share in CoC. It further stated that their representative has not agreed to any of the agendas, ie, for continuing of Mr. Viswanathan Sankaran as RP and fixing the fees of RP and further mentioned that Canara Bank has not affirmed to any of these agendas and that no voting either physical or electronic had been resorted to in the meeting. The letter further requested to call meeting of CoC at the earliest so that minutes drawn erroneously can be discussed and further course of action including replacement of IRP.
3.12 Thereafter IA 276/2021 was filed by Canara Bank on 15.06.2021. The AA vide order dated 17.09.2021 directed Mr. Viswanathan Sankaran to hold the CoC meeting by next week. The meeting was held on 21.10.2021 and Mr. Viswanathan Sankaran was replaced by Ms. Shirly Mathew as RP.
3.13 Thereafter, the AA vide order dated 27.10.2021 directed both the parties to settle the matter regarding payment of fees and expenses amicably among them. Mr. Viswanathan Sankaran submitted that Canara Bank was not interested in any meeting.
3.14 Finally, the AA vide order dated 30.11.2021 in IA 276/2021 observed that:
“The Respondent/IRP instead of filing the voting sheet pertaining to the first CoC meeting dated 09.04.2021 contended that there is no need of maintaining any voting sheet which is unacceptable and against to the Code and Regulations made thereunder.”
…
“We find force in the submission made on behalf of the Canara Bank. The Applicant/Canara Bank having 84.6% voting share in the CoC is entitled to pass a Resolution to replace the Respondent and to seek appointment of another Insolvency Professional as the Resolution Professional in place of the Respondent, if in its opinion, he is not discharging his duties, in accordance with law.”
…
“…in view of the clear mandate of Section 27 of the IBC and in view of the failure in conducting the CIRP by the Respondent in accordance with the Code and Regulations made thereunder, the instant IA is allowed. Accordingly, the Respondent is replaced as the IRP of the Corporate Debtor i.e. M/s. Mylari Agro Products Ltd. And Ms. Shirley Mathew is appointed as the Resolution Professional in place of the Respondent.”
3.15 The DC notes that said observations made by the AA in above order is challenged by Mr. Viswanathan Sankaran before Hon’ble NCLAT, Chennai Bench to set aside the order dated 30.11.2021 passed in IA 276/2021 by the AA which records adverse and disparaging remarks against Mr. Viswanathan Sankaran.
3.16 Mr. Viswanathan Sankaran has also filed IA 349/2021 to confirm him as RP of CD which was also dismissed by the AA on 30.11.2021. The said order has also been challenged by Mr. Viswanathan Sankaran before Hon’ble NCLAT, Chennai Bench.
3.17 However, the DC notes that the abovesaid order of the AA involving the appointment of RP is under challenge before Hon’ble NCLAT, Chennai Bench in appeal by Mr. Viswanathan Sankaran, hence the DC refrains from intervening in the matter, at this stage.
4. Contravention-II
Failure to convene CoC meetings as per Regulation 18 of extant CIRP Regulations
4.1 Regulation 18 of extant IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) specifies that RP may convene a meeting, if he considers it necessary, and shall convene a meeting if a request to that effect is made by members of the committee representing thirty-three per cent of the voting rights.
4.2 The Board observed that one of the FCs Canara Bank with 84.6% voting share vide a letter dated 26.04.2021 requested Mr. Viswanathan Sankaran to conduct the next CoC meeting at the earliest. The said letter of FC also indicated the issues intended to be discussed in the CoC meeting. However, he failed to consider the request of the FC who had the requisite voting percentage to request for a CoC meeting. He not only failed to consider the request of the FC but also conducted the 2nd CoC meeting after a substantial elapse of time on 21.10.2021. He avoided calling for a meeting, mandated as per law, which is mala fide when seen in context that the agenda was to replace him with another RP.
4.3 The Board also noted that he made incorrect submissions in his reply to the DIR stating that there was no request made by Canara Bank in their letter dated 26.04.2021 to convene a meeting. However, upon perusal of the contents of the said letter, it is observed that Canara Bank in para 3 of their letter had requested him to call for a CoC meeting at the earliest.
4.4 Thus, in view of the above, the Board held the prima facie view that Mr. Viswanathan Sankaran has inter alia violated regulation 18 of CIRP Regulations as in time, clauses 1, 2, 13 and 14 of the Code of Conduct.
Submissions
4.5 Mr. Viswanathan Sankaran submitted that there is no request made by Canara Bank in their letter of 26.04.2021 to convene a CoC meeting under section 18(1). Further a request under section 18(1) also needs to be accompanied by a detailed note as specified by the Board in guidelines dated 16.04.2021 and served on all the stakeholders including, in this instance, Karnataka Bank and the suspended Board. It should also be noted that the letter is addressed to the IRP. A request for convening a CoC meeting can only be made to a RP under regulation 18. It automatically follows that no such request can be made by the letter of 26.04.2021. Additionally, no request whatever for convening a CoC meeting under regulation 18 has been made by the Recovery Section of Canara Bank in the other two correspondences from them, namely their letter of 06.05.21 and their IA of 15.06.21.
4.6 There has been no “substantial elapse” of time between the 1st and 2nd CoC meeting. The 2nd CoC meeting was called when it was required to be so called, that is when we needed to get the CoC approval for Expression of Interest (EOI) and Form G leading up to a resolution, and he was able to do so overcoming the restraints placed upon him by Canara Bank. This comment has been made without factoring the days lost to Covid and other extraneous circumstances and allowed as such by NCLT in IA 330.
4.7 He submitted that no request for a new (2nd) CoC meeting was made by the DGM Recovery in his letter either under regulation 18 or otherwise. The request made in para 3 of the letter was for a reopening and a reconvening of the completed 1st CoC. He quoted from para 3 of the letter: “We request you to correct the above, and call for meeting of CoC at the earliest so that minutes drawn erroneously as above can be discussed” This is clearly a request to reconvene the 1st CoC meeting and change the proceedings therein as per his wishes and can by no stretch of imagination be construed as a request for calling for a totally separate 2nd CoC meeting
4.8 He further submitted that for an allegation to be made by the Board of any violation on his part in not acting upon a request made by a CoC member to convene a CoC meeting under regulation 18, such a letter has to be produced in evidence. None exists and therefore none has been produced by SCN in support of their allegation. And further, the letter should be from the Authorised Representative of the FC CoC member, i.e., the head of the designated operational branch and not from someone in the Bank who is in charge of an entirely different function, Recovery, and with no locus standi to deal with CIRP or RP. It can be seen from the above that the observations and the conclusions drawn therefrom by the SCN are incorrect and there is therefore no violation of regulation 18(2) of the CIRP Regulations read with clause 13 of the Code of Conduct as alleged.
Analysis and Findings
4.9 Regulation 18 of CIRP Regulations before amendment on 09.02.2022 provided as follows:
18. Meetings of the committee.
A resolution professional may convene a meeting of the committee as and when he considers necessary, and shall convene a meeting if a request to that effect is made by members of the committee representing thirty three per cent of the voting rights.
Further, regulation 17(3) of the CIRP Regulations provides as follows:
17. Constitution of committee.
(3) Where the appointment of resolution professional is delayed, the interim resolution professional shall perform the functions of the resolution professional from the fortieth day of the insolvency commencement date till a resolution professional is appointed under section 22.
4.10 The regulation 17(3) of CIRP Regulations provides that an IRP shall perform functions of RP till appointment of RP. Hence the letter dated 26.04.2021 by Canara Bank has been rightly addressed to Mr. Viswanathan Sankaran as an RP. Further, the Canara Bank also holds voting share of more than thirty three percent required under regulation 18 of the CIRP Regulations for requesting to convene meeting.
4.11 The DC notes the submission of Mr. Viswanathan Sankaran that a request under regulation 18(1) of CIRP Regulations also needs to be accompanied by a detailed note. The “Clarification – Consideration of matters / issues by the committee of creditors on request by members of the committee” dated 16.04.2021 issued by IBBI provides as follows:
“3. It is clear from a joint memorizing of the provisions of regulations 18, 19 and 21 of the CIRP Regulations that members of the CoC having 33% of the voting rights may request the RP to convene a meeting of the CoC. Such request shall include a note proposing the matters to be discussed or issues to be voted upon, along with relevant documents, if any. On receipt of the request, the RP shall convene a meeting of the CoC for consideration of the note.”
It further explains the note as follows:
‘Note’ means a note proposing the matters to be discussed or issues to be voted upon, along with relevant documents, if any, in a meeting of the CoC.
The DC notes that Mr. Viswanathan Sankaran has not informed Canara Bank required requirement of note and did not ask them to submit note.
4.12 The DC observes that para 3 of the letter dated 26.04.2021 provides that “We request you to correct the above, and call for meeting of CoC at the earliest so that minutes drawn erroneously as above can be discussed.” The contents of the letter clearly imply request to convene meeting by member of CoC. The submission by Mr. Viswanathan Sankaran that this is a request to reconvene the 1st CoC meeting and change the proceedings therein and not a request for calling for a totally separate 2nd CoC meeting is somewhere an acceptance of the fact that request has been made to convene meeting of CoC. By naming it as 1st or 2nd meeting, Mr. Viswanathan Sankaran is being evasive in his responsibility to act as per regulation 18(1) of CIRP Regulations. Hence the DC finds that by not adhering to the request of the FC to conduct meeting, Mr. Viswanathan Sankaran has violated regulation 18 of CIRP Regulations, clauses 1, 2, 13 and 14 of the Code of Conduct.
5. Contravention-III
Violation of the AA’s order
5.1 It was observed that the AA passed an order dated 17.09.2021 in IA No. 276 of 2021 directing “The Resolution Professional is directed to hold a CoC meeting by next week and submit a Resolution immediately”. It was noted that despite being directed by the AA to hold CoC meeting by next week, Mr. Viswanathan Sankaran conducted the 2nd CoC meeting with a substantial delay on 21.10.2021.
5.2 As an IP it is duty of Mr. Viswanathan Sankaran to abide by the orders passed by the AA in its letter and spirit, and his conduct of convening CoC meeting with a delay even when the order of the AA was explicit in its directions is prima facie in violation of section 17(2)(e) of the Code read with clause 12 and 14 of the Code of Conduct.
Submissions
5.3 Mr. Viswanathan Sankaran submitted that he cannot understand how a delay of 8 days in DIR has morphed to a larger delay in the SCN. He reproduced the allegation in the DIR below: “However, it has been noted that the order was uploaded on 06th October 2021.The IP, as per the order dated 17th September 2021, should have conducted the meeting by 13th October 2021 (assuming that the order has been uploaded on 6th October 2021). However, from the documents available on record, it is noted that the IP conducted the CoC meeting on 21st October, 2021, i.e. after a delay of 8 days”
5.4 He submitted that the above observation is not so much of an observation as a morphed rephrasing and quantification of the non-factual allegations made by Canara Bank in their complaint of 22.10.2021 for which he had given a detailed reply to IBBI. He submitted that there has been no delay. The CoC meeting was called for on the day the order was received, i.e. on the 06.10.2021. The genuine meeting could not be held earlier due to the prior engagements of the CoC members and the Dussehra holidays. This is recorded in the reply by Canara Bank on 07.10.2021 from their Authorised Representative to his request for a meeting.
5.5 He submitted that the CoC meeting was held as ordered by NCLT to take forward the CIRP Resolution on the 21st before the date fixed for the next hearing which was the 23.10.2021. There has thus been no violation of section 17(2)(e) as alleged by the SCN.
5.6 Mr. Viswanathan Sankaran submitted that Canara Bank committed a contempt of Court. The AA’s order dated 27.10.21, stated that Canara Bank should discuss with him and should find an amicable solution. The operative part of the order in IA 276 in para 3 read: “With regard to the dispute about the payment of fees and expenses both the parties ( i.e. Canara Bank and S.Viswanathan) shall try to settle the matter amicably among themselves and report back to the Adjudicating Authority on the next date of hearing List on 10.11.21” Thus giving a time period of 2 weeks for such bilateral discussions. He submitted Canara Bank committed a contempt of court by refusing to meet him for any such discussion vide email dated 02.11.2021 stating that they are not agreeable to any private meeting.
Analysis and Findings
5.7 The DC notes that Mr. Viswanathan Sankaran was present before the AA on 17.09.2021 while order for conducting CoC meeting by next week was passed. Hence it may be said that he was aware of direction by the AA. The DC further notes that representative of Canara Bank vide email dated 07.10.2021 requested to prepone the meeting to 16.10.2021 or postpone it to 21.10.2021 or 22.10.2021 on behest of his unavailability due to personal engagement. In light of above, DC is inclined to take a lenient view.
6. Order
6.1 In view of the forgoing discussion, the DC finds that Mr. Viswanathan Sankaran is in violation of regulation 18 of CIRP Regulations, clauses 1, 2, 13 and 14 of the Code of Conduct for failing to convene CoC meeting on the request of FC.
6.2 The DC, in exercise of the powers conferred under section 220(2) of the Code read with regulation 13 of the IBBI (Inspection and Investigation) Regulations, 2017 hereby suspends the registration of Mr. Viswanathan Sankaran having Registration No. IBBI/IPA-001/IP-P00538/2017-2018/1096 for a period of one year.
6.3 This Order shall come into force on expiry of 30 days from the date of its issue.
6.4 A copy of this order shall be sent to the CoC of all the Corporate Debtors in which Mr. Viswanathan Sankaran is providing his services, if any.
6.5 A copy of this order shall be forwarded to the Indian Institute of Insolvency Professionals of ICAI where Mr. Viswanathan Sankaran is enrolled as a member.
6.6 A copy of this Order shall also be forwarded to the Registrar of the Principal Bench of the National Company Law Tribunal.
6.7 Accordingly, the show cause notice is disposed of.
-sd-
(Jayanti Prasad)
Whole-time Member, IBBI
Dated: 14th February 2023
Place: New Delhi
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George Ottathycal, CEO of Prima Assicurazioni: “We are really delighted at this chance to kick off the MotoGp 2023 season together with Paolo, the riders and the whole team. The team pleased us greatly last year. In addition to sharing important goals. Thanks to teamwork; the first year already proved a valuable opportunity for us to compare notes between two concerns that focus on technology and talent as sparring partners that grow together. We are real bike fans. It’s no coincidence that more than 1 in 10 motorcyclists in Italy are insured with Prima, We’re here to cheer on the riders and team, certain that they’ll hold the flag high.”
Go behind the scenes as Martin and Zarco get ready for 2023
Gino Borsoi, Prima Pramac Racing Team Manager: “We’re looking to this season with great enthusiasm. For me it will be a new adventure, I’d go so far as to say it’ll be an important year. The 2023 Season will be my first with the Prima Pramac Racing team. I don’t think it’s a coincidence that ‘23’ always has been a significant number for me, even when I was racing…let’s hope it’s a good omen. For the tests in Valencia, I already got to know all the guys and the riders. My first impressions were very encouraging, I was very satisfied. You can take nothing for granted in this world − ever − but I’m sure we will do our utmost.”
Johann Zarco: “For the third consecutive year I will be with Team Prima Pramac, I am very pleased to be wearing these colours for another season. We have a great team, a great bike… and Jorge and I get on very well together. I’d say we have all the ingredients for a great season, and maybe − who knows? − the win will come our way.”
Jorge Martin: “I can’t wait for the action again with my team. Last year was a special year, with very difficult moments too, but it served for me to grow and become stronger. I have big plans and real ambition, and together with my team I know we can do great things. In Sepang when I climb onto my Ducati I’ll know whether all the hard work of the winter pause was worth it. We’re ready! I’m, ready!”
This acquisition expands the charter fleet with high-speed, long-range, new Gulfstream G650ER
VAN NUYS, Calif., Jan. 23, 2023 /PRNewswire/ -- Pegasus Elite Aviation, Inc., a well-recognized industry leader in the private jet realm operating and managing a large fleet of Gulfstreams with outreach around the globe, was acquired by Prima Air Group in late 2022.
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Prima Air Group's acquisition of Pegasus Elite Aviation offers the private jet industry a diverse fleet of aircrafts ranging from the Turboprop aircraft all the way up to the well-known, ultra-long-range Gulfstream G650ER. Led by an executive team holding a combined century of corporate aviation experience, Prima Air Group has cultivated a strong support team of more than 100 full-time dedicated employees, including 49 full-time pilots, 25 full-time flight attendants, as well as ground support employees assisting to ensure a safe and efficient operation.
The acquisition of Pegasus Elite Aviation is one of the many business ventures Prima Air Group has outlined for the long-term growth of the company. Dr. Charles Huang established Prima Air Group in 2021 after becoming the majority stakeholder of Prima Air, Inc. Through Huang's notable and philanthropic goals, he has donated more than $100 million USD to his alma maters in the United Kingdom and China, as well as several industry leading hospitals in the United States.
Prima Air, Inc. was founded by Lina Tullberg in 2019 with a successful venture interest and partnership with Pasaca Capital, LLC, which is solely owned by Dr. Charles Huang. The Chinese-American entrepreneur stated, "We will continue to support US-based businesses with the rapid expansion of our jet fleet." Huang's statement about Prima Air Group's expansion compliments the ever-increasing demand for air travel and access to the global market.
Lina Tullberg, Partner and CEO of Prima Air Group, adds that, "With the combination of elite management, high-level operational experiences and efficiencies, along with the ever-expanding fleet of managed and owned aircrafts by Pegasus, Prima Air's future vision and business models will establish the company as a strong player and industry leader."
Tim Prero, CEO of Pegasus Elite Aviation, said, "With the leadership of Dr. Huang and Lina Tullberg, Pegasus Elite Aviation will excel with a substantially enlarged and improved aircraft fleet." To further that goal, Pegasus is expanding its fleet by adding a brand-new Gulfstream 650ER.
Gulfstream 650ER holds the current record for the furthest and fastest private jet with a max cruising speed of 0.925 Mach and a range of 7,500 nautical miles. Prero further explained that, "Adding this 2022 G650ER to our existing fleet enables us to better meet and even exceed our fast-growing and diverse customer base, both domestic and globally."
Just in time for the celebration of the Lunar New Year, Pasaca Capital congratulates Gulfstream on another successful delivery experience, as well as Prima Air and Pegasus Elite Aviation on achieving another significant milestone.
For more information about Prima Air Group, please visit www.flyprimaair.com. For any additional inquiries, please contact 626-889-5818 or info@flyprimaair.com.
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SOURCE Prima Air
Noelia Campos Guerrero is Costa Rica’s First Female Astronaut in Groundbreaking Feature Film: Orbita Prima
I had the opportunity to talk with Orbita Prima costar Noelia Campos Guerrero about her experience co-starring in Costa Rica’s first epic space science fiction feature film and her thoughts about being a professional actress in Costa Rica.
Please tell us a bit about your background. Where did you grow up and study?
I am from Costa Rica, specifically I was born and raised in Heredia. In high school I had my first encounters with the artistic scene and since then I fell in love with acting. I started studying dance and theater in academies with special scholarships to be able to pay for my classes. In fact, in my first theater school I worked cleaning bathrooms and even removing gum from under the seats, in exchange I could receive classes, so that could have been my first stage job.
Later I decided to enter the Dramatic Arts career at the University of Costa Rica where I learned about acting, directing, production and voice work.
So, from the age of 15 until now, acting, theater and cinema have been my life.
Who and what inspired you to become an actress?
My first encounters with acting transformed my life. The opportunity to dedicate myself to something with such emotional power has always inspired me greatly. Of course I have my favorite actresses who are great acting references like Tilda Swinton, Viola Davis, Meryl Streep.
But my biggest inspiration is the work itself, interpreting and experiencing other worlds and other people is fascinating.
As well being a theater, television and film actor you do voice acting as well. Can you tell us something about your voice acting experiences? What has been your favorite medium for acting so far?
Being a voice actress is a beautiful experience, it is also a great challenge.
There is a big difference between acting for movies or theater and being a voice actress, since on stage you have many tools to express yourself, the costumes, the movement and your whole body. Doing voiceovers you only have your voice to provide everything, you have to be very focused and work hard physically to achieve the character’s voice.
My favorite voice work so far has been “Pepi y los Puntos” , a children’s podcast about a boy and his friends with colored dots. It was a great and exhausting experience, we transformed a recording booth into all kinds of settings, it was beautiful. This podcast even won the 2020 Latin Podcast Award for Best Children’s Podcast.
Cinema, theater, voice acting, each one has its special magic, I couldn’t choose a favorite, I really love being part of all of them.
Orbita Prima is a groundbreaking film, being Costa Rica’s first major science fiction production.How did you prepare for your role and what were some of the challenges you faced during the shoot. What was your favorite and least favorite part of the entire process?
It was a challenging process from start to finish. Among the most intense challenges I had to change was my physique. The production provided me with a nutritionist and I underwent a special diet and intense exercise regimen to achieve the body of Natalia, my character. I gained at least two or three kilos of muscle mass in less than two months to prepare for the character, who is a military-trained astronaut. The creation of the character was my favorite part, I really loved playing Natalia, since she is a very different character from the ones I have played up to now.
The least favorite part could have been the speed of the process, but it is well known that in this type of production, resources are limited and time must be maximized.
What is the reaction you hope people will have when they watch the movie and what message do you hope they will get from watching it?
I hope people are surprised to see a unique story on the big screen which was a huge risk for a Costa Rican film production. I hope you have a good time as the movie is loaded with action and unexpected twists.
The movie has several important messages. I highlight the protection of the environment, and also the emotional element, since all the characters act out of the affection they have for their loved ones. No matter how big the problem is, or how advanced the technology, the motor of the human being cannot be separated from affection and those close to it.
Were you a fan of science fiction before being cast for Orbita Prima? If so, what are your favorite shows and movies?
I love science fiction movies, I love action movies and superheroes. But I also love fantasy movies and animated movies. I really enjoy the new wave of Latin American cinema with its dose of magical realism.
And of course I would love to make more science fiction, actually my greatest desire is to continue making films of all genres. I feel that each one has its own special challenge.
Any tips and advice for young women interested in pursuing a career in acting?
It is a growing medium in Costa Rica but it is difficult and possibly many people will want to discourage you. But the most important thing is that you follow your interests and trust your abilities.
There are many schools where you can obtain your professional credentials so follow your desires. It is a hard road, like all things, but there is nothing more satisfying than dedicating yourself to something that you are passionate about.
What are your upcoming plans?
I hope this year will fill up with beautiful projects. At the moment my upcoming project is a tour to Spain with a play called La Celde Sin Noche. I am very excited about this because it will be the first time for me to travel to that part of the world. It is truly an honor to be able to represent Costa Rica in that country.
Anything else you would like to share with our readers?
Just to thank you very much for the support of this Órbita Prima project. Thank you very much for the affection with which you have received it. And I hope to continue giving everything I have to provide audiences with characters that they can enjoy and feel in each project.
Much love to you all.
LONDON, January 27, 2023--(BUSINESS WIRE)--Harris Williams, a global investment bank specializing in M&A advisory services, announces it advised Prima Solutions on its sale to Total Specific Solutions (TSS), a subsidiary of Topicus.com (TSXV:TOI; Topicus) and part of Constellation Software Inc. (TSX:CSU; Constellation). Prima Solutions is a leading European insurtech company that helps insurance professionals transform existing legacy systems and streamline core business processes, thereby speeding up their digital transformation. The transaction was led by Julien Oussadon and Luke Clifford of the Harris Williams Technology Group.
"Prima Solutions’ leadership position in France, blue-chip customer base, strong recurring revenue growth and cloud-based solutions were key to attracting interest from a variety of strategic partners. We’re excited to see Prima Solutions’ growth continue into the next phase as part of TSS," said Julien Oussadon, a managing director at Harris Williams.
Hugues Delannoy, founder and president of Prima Solutions, added, "Harris Williams provided exceptional advice and support at every stage of the transaction and has been pivotal to its success. I am very excited for the future of Prima Solutions as we partner with TSS and continue our mission to digitally transform the French insurance industry."
Prima Solutions designs software for insurance professionals, covering all business processes in the non-life, health, protection and mortgage insurance verticals. The group serves more than 50 customers and works with a global network of partners. It helps insurance companies go digital and manage their operations more efficiently through a highly configurable, modular, and cloud-based software suite.
TSS is the leading provider of IT business solutions and consists of independent business units that deliver products and services to their specific vertical market segments. This market expertise is based on decades of experience. TSS is part of Constellation, a public company listed on the Canadian Stock Exchange.
Topicus is a leading pan-European provider of vertical market software and vertical market platforms to clients in public and private sector markets. Operating and investing in countries and markets across Europe with long-term growth potential, Topicus acquires, builds, and manages leading software companies providing specialized, mission-critical, and high-impact software solutions that address the particular needs of customers.
Constellation's common shares are listed on the Toronto Stock Exchange under the symbol "CSU." Constellation acquires, manages and builds vertical market software businesses.
Harris Williams is a global investment bank specializing in M&A advisory services. Clients worldwide rely on us to help unlock value in their business and turn ambitious goals into reality. We approach every engagement with boundless collaboration, pooling expertise and relationships across industries and geographies to uncover the unique story of each company.
Technology is ubiquitous in today’s global economy, with most sectors and industries rapidly adopting software and data solutions as companies seek to increase competitiveness and enhance productivity. Led by seasoned and passionate professionals with strong vertical and horizontal experience, the Harris Williams Technology Group partners with both growth capital and private equity investors as well as company leaders around the globe. Our clients rely on us to navigate the ever-evolving technology M&A landscape and help them turn ambitious goals into reality. Our Technology Group has deep expertise across application and vertical software as well as technology and data services.
Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 8th Floor, 20 Farringdon Street, London EC4A 4AB, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: hwgermany@harriswilliams.com). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. DE321666994). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230127005292/en/
Contacts
For media inquiries, please contact Julia Moore at media@harriswilliams.com
The Czech Republic’s Prima Group will launch a new streaming video service named prima+ on February 8.
Aimed at the whole family, it will offer, in addition to TV pre-premieres, thousands of film and series titles and exclusive products under the prima+ ORIGINALS label.
Commenting on the new service, Prima Group CEO Mark Singer said: “It may seem that the Czech market for streaming services is already saturated, but this is not the case. People’s habits are changing, they no longer watch shows only on TV, but watch them on different devices and at a time that suits them. The global covid-19 pandemic has significantly strengthened this trend not only in the world, but also in our country. In the case of our shows alone, over the past six years, delayed viewership of prime-time series has increased more than fivefold. We also know from detailed surveys that people are willing to pay for multiple services at once. At the same time, we decided from the beginning to follow a different path than our commercial competition. We want our online programmes to continue to be available to a wide audience, that’s why we come with the option of choosing from three tariffs, and it’s up to each user which programs and at what time and quality and for how much they want to watch”.
Prima+ ORIGINALS will be premium formats filmed by leading Czech creators and the Prima group will invest significantly in their development between 2023 and 2025. They will be available exclusively to prima+ users for up to a year before being shown on TV.
Singer added: Currently, 13 premium series have been produced or are currently being produced for the prima+ platform, and we plan to implement another 28 projects in the near future. In the horizon of the next three years, we plan to invest in the order of more than CZK1 billion, this is our largest investment in serial production so far”.
Prima+ will be the only flexible video service on the Czech market. It will allow users to consume content based on a choice of three tariffs, each of which allows for up to five unique profiles. The basic FREE offer, which allows access to the Prima group’s video archive, will be free. Registered users will also be able to watch live broadcasts of all Prima Group’s Czech TV channels, all in SD quality and with advertising.
Meanwhile, the expanded LIGHT offer for CZK99 per month will also include pre-premieres of popular Prima programmes and series up to seven days before their TV broadcast, more than 2,000 Czech and foreign titles, as well as exclusive prima+ ORIGINALS content. It will all be in HD quality and with half the volume of advertising.
The PREMIUM tariff for CZK149 per month will include a complete offer in the best Full HD quality and completely without commercials. Each registered user will be able to create up to five personalised family profiles with recommended, tailored content. It will also be possible to register up to five devices in the home (smart TV or HbbTV, phone, computer or tablet), and to watch three prima+ streams at the same time.
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© Provided by The Indian Express
A rift in the BJP-ruled Morbi municipality came out in the open as 41 of the councillors passed a separate resolution on Wednesday in response to a Gujarat government notice asking why the civic body should not be dissolved over the bridge collapse that killed 135 people last October.
While three had sought leave, 49 councillors were present at the 52-member general board’s meeting, convened to decide the civic body’s response to the notice. Jayrajsinh Jadeja, vice-president of the municipality, proposed a resolution underlining that the then municipality chief officer, and not the elected wing of the civic body, executed a memorandum of understanding with the Oreva Group's Ajanta Manufacturing Private Limited on March 7, 2022, to hand over the operations and maintenance of the suspension bridge for 15 years.
Jadeja said that he, municipality president Kusum Parmr and executive committee chairman Suresh Desai signed a rojkam (working note) on March 8, 2022, about the transfer of the bridge.
Seven of the 49 members voted in favour of the resolution, which was declared passed by the board as none opposed it.
However, soon after, Bhavik Jariya, councillor from ward no.13, moved another resolution stating the general board members were not aware of the transfer of the bridge to the Oreva Group as the matter was never referred to the board for its consideration and approval. He claimed that no liability could therefore be ascribed to the board members for any lapse that could have led to the bridge collapse. His resolution was supported by a group of 41 members, which didn’t include the seven councillors who supported the first resolution.
Talking to the media after the meeting, N K Muchhar, resident additional collector of Morbi and in-charge of the municipality’s chief officer, said, “Members of the Morbi municipality have finalised two separate answers for the proceedings initiated by the government under Section 263. The meeting today resolved to minutise [sic] and forward them to the government.”
Referring to a January 23 resolution of the general board, Jadeja also told journalists that the members were free to respond to the government’s show-cause notice individually. “Last time, the board adopted a resolution that members were free to respond (to the notice) individually also if they wished so. Therefore, the members have responded in the manner they deemed appropriate,” he said.
The vice-president reiterated that the municipality had no role in any failure leading to the bridge’s collapse. “Our contention is that the municipality prima facie had no role to play. Besides signing the rojkam, the municipality president, vice-president and chairman of executive committee had said that the general board will approve of it. But the fact remains that we didn’t hand over the bridge after passing a resolution in the general board to that effect,” said Jadeja.
However, Jariya said that besides the agreement to hand over the bridge to the Oreva Group not having been referred to the general board, the municipality had no power to hand over such assets to a private entity without the state government’s concurrence.
Incidentally, more than 40 councillors went to Gandhinagar and made a representation to Chief Minister Bhupendra Patel on December 19, 2022, claiming they were innocent and that they should be allowed to complete their five-year-long term as councillors. Their move came after the Gujarat High Court, while hearing a suo motu public interest litigation petition initiated after the bridge collapse, observed in November last year that there was a “default” on the part of the municipality and asked the government why it was not "superseding" the municipality’s general board as per Section 263 of the Gujarat Municipalities Act 1963.
Eventually, on January 18, the government issued a notice to the municipality president stating that the civic body had “failed” to discharge its duties and that the general board was “incompetent to discharge its primary duties.” The government asked the president to show cause by January 25 in the form of a general board resolution as to why the municipality should not be dissolved.
On January 23, however, the general board stated that documents and records pertaining to the bridge had been impounded by the government’s special investigation team (SIT) and therefore the civic body was unable to respond to the show-cause notice.
On February 3, the urban development and urban housing department sent a copy of the SIT’s primary report containing relevant documents. Ten days later, the department asked the civic body to send its response to the show-cause notice by February 16. This necessitated Wednesday’s special meeting of the general board, which has only BJP members by virtue of the saffron party having won all the seats in the February 2022 polls.
Rep. Nancy Mace discusses the Southwest Airlines meltdown and how Pete Buttigieg responded to the matter on ‘Maria Bartiromo’s Wall Street.’
Southwest Airlines warned Thursday that it expects to report another loss in the first quarter as costs add up from the operational meltdown that canceled nearly 17,000 flights during the holiday and left millions of passengers stranded.
"Based on current revenue and cost trends, we currently expect a first quarter 2023 net loss. However, we are encouraged by current booking trends in March 2023," said CEO Bob Jordan in a statement.
Operating revenue for the first quarter is expected to grow by 20% to 24% with available seat miles up approximately 10%.
In its fourth quarter earnings report, the discount airline reported a net loss of $220 million due to the operational disruption which cost the airline approximately $800 million. However, the air carrier still reported an adjusted annual profit of $723 million for the full 2022 fiscal year.
Operating revenue rose 7.7% to a record $6.2 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LUV | SOUTHWEST AIRLINES CO. | 35.36 | -0.05 | -0.14% |
The largest domestic carrier warned earlier this month that it expected the disruption that occurred between Dec. 21 and Dec. 31 to result in a pre-tax negative impact in the range of $725 million to $825 million.
AIRLINE EARNINGS COMING IN STRONG, DESPITE RISING FARES AND ECONOMIC SLOWDOWN
Canceled Southwest Airlines flights appear on the monitors at LAX on Thursday, Dec. 29, 2022. (Christina House / Los Angeles Times via Getty Images / Getty Images)
But this problem, which is now being investigated by federal officials, is still costing the airline.
On Thursday, Jordan also reiterated how "deeply sorry" he was to employees and customers for the meltdown, adding that the carrier has taken steps to "bolster our operational resilience and are undergoing a detailed review of the events."
SOUTHWEST AIRLINES SUED BY SHAREHOLDERS FOLLOWING OPERATIONAL MELTDOWN
Hundreds of Southwest Airlines checked bags are piled at baggage claim at Midway International Airport as Southwest continues to cancel thousands of flights across the country Wednesday, Dec. 28, 2022, in Chicago. (AP Photo/Erin Hooley / AP Newsroom)
The comments come just a day after the U.S. Transportation Department announced that it was investigating whether Southwest Airlines deceived customers by knowingly scheduling more flights in late December than it realistically could handle.
"DOT is in the initial phase of a rigorous and comprehensive investigation into Southwest Airlines’ holiday debacle that stranded millions," the department said in a statement.
SOUTHWEST AIRLINES TO SPEND OVER $1B TO INVEST IN IT SYSTEMS FOLLOWING HOLIDAY MELTDOWN
A traveler waits outside the Southwest Airlines baggage office at Oakland International Airport (OAK) in Oakland, Calif., Wed., Dec. 28, 2022. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
Southwest said its holiday schedule "was thoughtfully designed" with "a solid plan to operate it, and with ample staffing."
However, it pledged to cooperate with any government inquiries and is "focused on learning from this event" and reducing the risk of a repeat.
The Associated Press contributed to this report.
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Southwest Airlines Pilots Association Vice President Cpt. Michael Santoro reacts to the FAA's nationwide technical system outage.
For many enterprise firms, 2022 was a tough year by anyone's standards. Granted, the pandemic has receded, but we're still dealing with its aftermath in the form of changed buying patterns, continued supply chain disruptions and new anxieties — plus inflation, layoffs and an impending recession are bringing their own challenges.
But there are always obstacles in the path to success, even when the forecast is for sunshine and lollipops. There's also always a way around, over or through our challenges, as long as those at the helm are determined and prepared for the road ahead.
That being the case, what do enterprise leaders need to know to have a profitable year in 2023? Here are the trends that I see as being the most impactful.
Tech Sales May Stagnate – but Not Stall
Although tech channel revenue is predicted to be higher this year than in 2019, with sales volumes remaining stable, the market is expected to stagnate because average deal sizes are predicted to fall. The long-term outlook is positive, though, with U.S. B2B technology reseller channel revenue forecast to resume year-over-year growth by 2024.
Yes, tech companies will face challenges this year, but they can still drive revenue at levels that exceed "recovery" expectations, which I see as a win unto itself. Demand for digital tools is expected to continue strongly, thanks to the need to compensate for the tight labor market and an aging workforce and the current trend of production reshoring.
"To partly solve the [labor] problem and compensate for rapid wage growth, companies are forecast to accelerate their investment in production automation tools in 2023," Justinas Liuima, industrial insights manager at Euromonitor International, noted. "Because of the issue of aging populations, investment in production automation is also likely to become a long-term trend."
Buyer-Centric Processes Demand a Shift in Sales Ops
Given that the market is tighter at the moment but has high revenue potential over the long term, now is the time for sales leaders to rethink their sales operations for greater efficiency. Crucially, this must include building in more buyer-centric processes, in light of the trend toward buyer-led, non-linear purchase journeys.
Over two-thirds of B2B buyers chose remote human or digital self-service interactions in 2021, and McKinsey analysts predicted that this will only increase. Purchase journeys are becoming even more complex and challenging to accommodate, requiring a more carefully thought-out sales process.
"For many sales organizations, the undertaking of moving processes along and building lean workflows has been a big challenge," Nicole Epstein of DealHub said. "But sales processes require flexibility and personalization. There's no one-size-fits-all approach. Organizations are urged to prioritize empowering their sales teams with the tools they need to do the job of selling better."
Marketing Strategy Requires an Upgrade
In 2023, most business marketing leaders expect their budgets to remain stable. This sounds like good news, but only 50% expect the budget to increase at a time when competition for customers and sales is rising fiercely and marketing teams will be called upon to push their efforts even higher.
With even less wiggle room and tighter purchase controls, CMOs need to take a more strategic approach to content marketing and massively Strengthen alignment across departments.
According to Robert Rose, chief strategy advisor at Content Marketing Institute, this demands a strategic rethink. "Most businesses think about how they can change content to fit marketing's purpose instead of how they might change marketing to fit content's purpose," he said, advising that leaders "look at content operations as the catalyst that can change everything for the content marketing challenges you face."
Cybersecurity Fears Dominate Business Spending
Following a significant uptick in cyber attacks, especially those sponsored by governments, it's clear that we've entered the age of cyberwarfare. In every business, cyberthreats are the biggest fear and strongest spending lever, which is good news for enterprise cybersecurity vendors and CISOs trying to capture more of the budget.
Security is taking an outsized role in technology spending in 2023, with many businesses choosing to balance the books by cutting back on discretionary spending and other areas of the business while increasing tech budgets. A exact Spiceworks Ziff survey of IT professionals predicted that cybersecurity will be one of the bigger line items in 2023 IT budgets and a primary use case for AI tools, reflecting a broad prioritization of cyber.
When it comes to cyber defenses, "You always need help," Jeff Grettler, global director of IT at SWZD, asserted. "Even if you're fully staffed, you just always feel like there should be like one more set of hands, one more set of eyes, one more layer that protects you."
However, CISOs and CIOs should be wary of spending their way to security. In the age of the "human firewall," more tech only gets you so far.
2023 Can Be a Year of Success for Enterprises
It's true that there are many challenges ahead in 2023, including tighter budgets, labor concerns and cyberthreats. But every challenge can also be an opportunity to thrive for organizations that refine sales processes and marketing strategies while taking a long view of the markets.
(Victor G. Snyder is a consulting business coach.)
