Oriental Bank of Commerce filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shekhar Resorts Limited for non-payment of debt amounting to Rs. 19,67,64,134 including interest. Shekhar Resorts Limited (R1) had approached the bank for financial facilities to complete the construction of a five-star hotel/resort. The bank sanctioned a term loan, letter of credit, and bank guarantee. R1 utilized the facilities but became irregular in servicing the debt, leading the bank to declare the account as a non-performing asset (NPA) and recall the advance.
Oriental Bank of Commerce (the Applicant) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shekhar Resorts Limited (R1) for a debt of Rs. 19,67,64,134 including interest. R1 had approached the Applicant for financial facilities to construct a five-star hotel/resort. The Applicant sanctioned a term loan of Rs. 2,000 lakhs, a letter of credit of Rs. 400 lakhs, and a bank guarantee of Rs. 150 lakhs. R1 mortgaged the resort property measuring 49,974 sq. meters to secure the financial facilities. R1 utilized the financial facilities but became irregular in servicing the debt. The Applicant declared R1's account as a non-performing asset (NPA) on 2015-09-30 and recalled the
…Sign in to view the parties.
Oriental Bank of Commerce sanctioned financial…
Oriental Bank of Commerce declared the…
Oriental Bank of Commerce filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shekhar Resorts Limited for non-payment of debt amounting to Rs. 19,67,64,134 including interest. Shekhar Resorts Limited (R1) had approached the bank for financial facilities to complete the construction of a five-star hotel/resort. The bank sanctioned a term loan, letter of credit, and bank guarantee. R1 utilized the facilities but became irregular in servicing the debt, leading the bank to declare the account as a non-performing asset (NPA) and recall the advance.
Oriental Bank of Commerce (the Applicant) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shekhar Resorts Limited (R1) for a debt of Rs. 19,67,64,134 including interest. R1 had approached the Applicant for financial facilities to construct a five-star hotel/resort. The Applicant sanctioned a term loan of Rs. 2,000 lakhs, a letter of credit of Rs. 400 lakhs, and a bank guarantee of Rs. 150 lakhs. R1 mortgaged the resort property measuring 49,974 sq. meters to secure the financial facilities. R1 utilized the financial facilities but became irregular in servicing the debt. The Applicant declared R1's account as a non-performing asset (NPA) on 2015-09-30 and recalled the
…Oriental Bank of Commerce sanctioned financial…
Oriental Bank of Commerce declared the…