The Bank of Nova Scotia initiated a Corporate Insolvency Resolution Process (CIRP) against Opto Infrastructure Limited due to a default on credit facilities amounting to Rs. 213,67,42,263.02 as of July 31, 2018. The initial petition was filed with the High Court of Karnataka under Sections 433(e) & (f), 434, and 439 of the Companies Act, 1956, seeking to wind up Opto Infrastructure Limited. Subsequently, the case was transferred to the National Company Law Tribunal (NCLT), Bengaluru Bench, following amendments to the Companies Act. The bank had provided various credit facilities to Opto Circuits, guaranteed by Opto Infrastructure Limited, which were not repaid despite multiple extensions and addendums to the facility letter.
The Bank of Nova Scotia, an international bank, extended credit facilities to Opto Circuits (India) Limited, a sister concern of Opto Infrastructure Limited. These facilities were guaranteed by Opto Infrastructure Limited through a corporate guarantee dated December 12, 2012. The credit facilities included overdraft, short-term working capital, bills discounting, bank guarantees, export packing credit, export bills discounting, and letters of credit, with an aggregate limit of Rs. 1,000,000,000. Opto Circuits defaulted on these facilities, leading to outstanding dues of Rs. 35,878,252 as of May 31, 2013. The bank issued recall letters and addendums to the facility letter, but Opto Circuits failed to meet its repayment commitments. As of February 10, 2014, the total
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Facility Letter dated 28.11.2012 proposing to…
The Respondent had guaranteed the Credit…
The Bank of Nova Scotia initiated a Corporate Insolvency Resolution Process (CIRP) against Opto Infrastructure Limited due to a default on credit facilities amounting to Rs. 213,67,42,263.02 as of July 31, 2018. The initial petition was filed with the High Court of Karnataka under Sections 433(e) & (f), 434, and 439 of the Companies Act, 1956, seeking to wind up Opto Infrastructure Limited. Subsequently, the case was transferred to the National Company Law Tribunal (NCLT), Bengaluru Bench, following amendments to the Companies Act. The bank had provided various credit facilities to Opto Circuits, guaranteed by Opto Infrastructure Limited, which were not repaid despite multiple extensions and addendums to the facility letter.
The Bank of Nova Scotia, an international bank, extended credit facilities to Opto Circuits (India) Limited, a sister concern of Opto Infrastructure Limited. These facilities were guaranteed by Opto Infrastructure Limited through a corporate guarantee dated December 12, 2012. The credit facilities included overdraft, short-term working capital, bills discounting, bank guarantees, export packing credit, export bills discounting, and letters of credit, with an aggregate limit of Rs. 1,000,000,000. Opto Circuits defaulted on these facilities, leading to outstanding dues of Rs. 35,878,252 as of May 31, 2013. The bank issued recall letters and addendums to the facility letter, but Opto Circuits failed to meet its repayment commitments. As of February 10, 2014, the total
…Facility Letter dated 28.11.2012 proposing to…
The Respondent had guaranteed the Credit…