GuarantCo Ltd., a financial creditor, filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Calcom Cement India Ltd., the corporate debtor. The application stems from the corporate debtor's failure to honor its financial obligations under a guarantee agreement. GuarantCo had provided guarantees to Axis Bank Ltd. and HDFC Bank Ltd. on behalf of Calcom Cement. When Calcom Cement defaulted on its loans, the banks invoked the guarantees, and GuarantCo made payments to the banks. Subsequently, GuarantCo and Calcom Cement entered into a Memorandum of Understanding (MOU) to restructure the debt, but disputes arose regarding the applicable interest rate and the interpretation of
…GuarantCo Ltd. (Financial Creditor) provided guarantees to Axis Bank Ltd. and HDFC Bank Ltd. for loans availed by Calcom Cement India Ltd. (Corporate Debtor). Calcom Cement defaulted on these loans, leading to the invocation of the guarantees by the banks. GuarantCo paid USD 10,842,267.16 to Axis Bank Ltd. and USD 11,221,084.9 to HDFC Bank Ltd. GuarantCo and Calcom Cement entered into an Amended and Restated Recourse Agreement on 18.05.2009. A Memorandum of Understanding (MOU) was signed on 26.07.2012 to restructure the debt. Calcom Cement made some payments, but disputes arose regarding the applicable interest rate. Calcom Cement claimed the interest rate should be capped as per RBI guidelines, while GuarantCo argued for a fixed rate as per the MOU. RBI rejected
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Calcom Cement India Ltd. approached…
GuarantCo and Calcom Cement entered into a…
GuarantCo Ltd., a financial creditor, filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Calcom Cement India Ltd., the corporate debtor. The application stems from the corporate debtor's failure to honor its financial obligations under a guarantee agreement. GuarantCo had provided guarantees to Axis Bank Ltd. and HDFC Bank Ltd. on behalf of Calcom Cement. When Calcom Cement defaulted on its loans, the banks invoked the guarantees, and GuarantCo made payments to the banks. Subsequently, GuarantCo and Calcom Cement entered into a Memorandum of Understanding (MOU) to restructure the debt, but disputes arose regarding the applicable interest rate and the interpretation of
…GuarantCo Ltd. (Financial Creditor) provided guarantees to Axis Bank Ltd. and HDFC Bank Ltd. for loans availed by Calcom Cement India Ltd. (Corporate Debtor). Calcom Cement defaulted on these loans, leading to the invocation of the guarantees by the banks. GuarantCo paid USD 10,842,267.16 to Axis Bank Ltd. and USD 11,221,084.9 to HDFC Bank Ltd. GuarantCo and Calcom Cement entered into an Amended and Restated Recourse Agreement on 18.05.2009. A Memorandum of Understanding (MOU) was signed on 26.07.2012 to restructure the debt. Calcom Cement made some payments, but disputes arose regarding the applicable interest rate. Calcom Cement claimed the interest rate should be capped as per RBI guidelines, while GuarantCo argued for a fixed rate as per the MOU. RBI rejected
…Calcom Cement India Ltd. approached…
GuarantCo and Calcom Cement entered into a…