Axis Bank Ltd. (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Resonance Paper Mill Pvt. Ltd. (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had availed various credit facilities totaling Rs. 27.87 crore, which were subsequently renewed and enhanced. The Corporate Debtor defaulted on its repayment obligations, leading to its account being classified as a Red Flag Account, then a Non-Performing Asset (NPA), and later a fraud account following a forensic audit that revealed stock inflation and data irregularities. The total outstanding debt, including interest and penal interest, amounted to Rs. 15,29,22,996.3/-.
A petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Axis Bank Limited (Financial Creditor) against Resonance Paper Mill Private Limited (Corporate Debtor).
The petitioner proposed Aegis Resolution Services Private Limited as the Interim Resolution Professional (IRP).
In June 2020, the Corporate Debtor approached the Financial Creditor for various credit facilities aggregating to Rs. 27.87 crore.
Credit facilities, including cash credit, export packing credit, term loan, working capital term loan, bank guarantee, LC/FLC, SBLC, and LCBN/FLCBN limits, were sanctioned via a Sanction Letter dated 11.07.2020.
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The Corporate Debtor approached the Financial…
Credit facilities…
Axis Bank Ltd. (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Resonance Paper Mill Pvt. Ltd. (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had availed various credit facilities totaling Rs. 27.87 crore, which were subsequently renewed and enhanced. The Corporate Debtor defaulted on its repayment obligations, leading to its account being classified as a Red Flag Account, then a Non-Performing Asset (NPA), and later a fraud account following a forensic audit that revealed stock inflation and data irregularities. The total outstanding debt, including interest and penal interest, amounted to Rs. 15,29,22,996.3/-.
A petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Axis Bank Limited (Financial Creditor) against Resonance Paper Mill Private Limited (Corporate Debtor).
The petitioner proposed Aegis Resolution Services Private Limited as the Interim Resolution Professional (IRP).
In June 2020, the Corporate Debtor approached the Financial Creditor for various credit facilities aggregating to Rs. 27.87 crore.
Credit facilities, including cash credit, export packing credit, term loan, working capital term loan, bank guarantee, LC/FLC, SBLC, and LCBN/FLCBN limits, were sanctioned via a Sanction Letter dated 11.07.2020.
…The Corporate Debtor approached the Financial…
Credit facilities…