Phoenix Arc Private Limited, acting as a trustee, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against GPI Textiles Limited, a company engaged in manufacturing cotton yarns, polyester yarn, and blended yarn. The petition was based on a default in repayment of loan facilities granted by The Hongkong and Shanghai Banking Corporation Ltd. (HSBC), which were later assigned to Phoenix Arc. The respondent contested the petition, alleging fraud, illegal assignment, and non-compliance with RBI guidelines.
GPI Textiles Limited was incorporated on 29.09.2000 and is engaged in the business of manufacturing cotton yarns, polyester yarn, and blended yarn. HSBC granted working capital and term loan facilities to GPI Textiles, evidenced by a sanction letter dated 24.03.2009 for ₹129,02,00,000. A Corporate Rupee Loan Facility Agreement was executed on 08.04.2009. Due to defaults in repayment, the account was classified as NPA on 01.03.2012 by HSBC. On 21.03.2012, HSBC assigned the debts to Phoenix Arc Private Limited. The respondent claims the assignment was illegal and fraudulent, violating RBI guidelines. The outstanding dues as of 26.12.2017 were ₹268,29,20,033. The respondent also entered into an arrangement with GL Asia Mauritius-II Ltd. (GLAM), which arranged ₹129 Crores
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GPI Textiles…
HSBC granted working capital and term loan…
Phoenix Arc Private Limited, acting as a trustee, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against GPI Textiles Limited, a company engaged in manufacturing cotton yarns, polyester yarn, and blended yarn. The petition was based on a default in repayment of loan facilities granted by The Hongkong and Shanghai Banking Corporation Ltd. (HSBC), which were later assigned to Phoenix Arc. The respondent contested the petition, alleging fraud, illegal assignment, and non-compliance with RBI guidelines.
GPI Textiles Limited was incorporated on 29.09.2000 and is engaged in the business of manufacturing cotton yarns, polyester yarn, and blended yarn. HSBC granted working capital and term loan facilities to GPI Textiles, evidenced by a sanction letter dated 24.03.2009 for ₹129,02,00,000. A Corporate Rupee Loan Facility Agreement was executed on 08.04.2009. Due to defaults in repayment, the account was classified as NPA on 01.03.2012 by HSBC. On 21.03.2012, HSBC assigned the debts to Phoenix Arc Private Limited. The respondent claims the assignment was illegal and fraudulent, violating RBI guidelines. The outstanding dues as of 26.12.2017 were ₹268,29,20,033. The respondent also entered into an arrangement with GL Asia Mauritius-II Ltd. (GLAM), which arranged ₹129 Crores
…GPI Textiles…
HSBC granted working capital and term loan…