IDBI Bank Limited, the Financial Creditor (FC), filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) against Kitply Industries Limited, the Corporate Debtor (CD), seeking initiation of Corporate Insolvency Resolution Process (CIRP). The FC had granted a loan of Rs. 500 lakhs to the CD in 1994. The CD defaulted on repayment, leading to a one-time settlement (OTS) in 2008. Under the OTS, the CD was to pay Rs. 77.56 crores, partly in cash and partly through 6% Cumulative Non-Convertible Debentures. The CD again slipped into financial difficulties and approached the authority concerned to be declared a sick industry under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The FC issued a letter to the CD requesting
…In 1994, IDBI Bank Limited (Financial Creditor or FC) granted a loan of Rs. 500 lakhs to Kitply Industries Limited (Corporate Debtor or CD). The CD defaulted on the loan repayment, leading to a one-time settlement (OTS) in 2008. As part of the OTS, the CD was to pay Rs. 77.56 crores, including Rs. 46.10 crores in cash and Rs. 31.55 crores through 6% Cumulative Non-Convertible Debentures. The CD made some payments but again faced financial difficulties and approached authorities to be declared a sick industry under SICA 1985. The FC requested the CD to repay the loan with interest, but the CD claimed it had no liability due to a 'No Dues Certificate'. The CD also made a reference to BIFR in 2012, which remained pending. As of 31.10.2017, the CD owed the FC Rs.
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IDBI Bank Limited…
A one-time settlement (OTS) was arrived at…
IDBI Bank Limited, the Financial Creditor (FC), filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) against Kitply Industries Limited, the Corporate Debtor (CD), seeking initiation of Corporate Insolvency Resolution Process (CIRP). The FC had granted a loan of Rs. 500 lakhs to the CD in 1994. The CD defaulted on repayment, leading to a one-time settlement (OTS) in 2008. Under the OTS, the CD was to pay Rs. 77.56 crores, partly in cash and partly through 6% Cumulative Non-Convertible Debentures. The CD again slipped into financial difficulties and approached the authority concerned to be declared a sick industry under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The FC issued a letter to the CD requesting
…In 1994, IDBI Bank Limited (Financial Creditor or FC) granted a loan of Rs. 500 lakhs to Kitply Industries Limited (Corporate Debtor or CD). The CD defaulted on the loan repayment, leading to a one-time settlement (OTS) in 2008. As part of the OTS, the CD was to pay Rs. 77.56 crores, including Rs. 46.10 crores in cash and Rs. 31.55 crores through 6% Cumulative Non-Convertible Debentures. The CD made some payments but again faced financial difficulties and approached authorities to be declared a sick industry under SICA 1985. The FC requested the CD to repay the loan with interest, but the CD claimed it had no liability due to a 'No Dues Certificate'. The CD also made a reference to BIFR in 2012, which remained pending. As of 31.10.2017, the CD owed the FC Rs.
…IDBI Bank Limited…
A one-time settlement (OTS) was arrived at…