The Oriental Bank of Commerce, as the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Sriramgiri Spinning Mills Limited, the Corporate Debtor, for defaulting on a loan repayment of Rs. 72,11,36,630.72. The Financial Creditor had sanctioned various credit facilities to the Corporate Debtor, including term loans and cash credit facilities, to support the construction of a factory building and the purchase of plant and machinery. The Corporate Debtor faced financial difficulties due to a slump in the spinning industry and approached the Board for Industrial and Financial Reconstruction (BIFR). The Financial Creditor also initiated recovery proceedings before the Debt Recovery Tribunal (DRT) and issued a
…The Oriental Bank of Commerce sanctioned a term loan of Rs. 29.50 Crores to Sriramgiri Spinning Mills Limited on 30.11.2006 for constructing a factory building and purchasing plant and machinery. Additional credit facilities, including cash credit and further term loans, were sanctioned over time. The Corporate Debtor defaulted on repayments, leading the Financial Creditor to issue a recall notice on 30.10.2015 under Section 13(2) of the SARFAESI Act. The Corporate Debtor approached BIFR, which declared it a sick industry on 24.09.2015. The Financial Creditor also initiated proceedings before the DRT for recovery of Rs. 67.79 Crores. The Corporate Debtor proposed a One Time Settlement (OTS) for Rs. 25 Crores, but failed to comply with the terms. The Financial Creditor
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Oriental Bank of Commerce sanctioned a term…
Financial Creditor…
The Oriental Bank of Commerce, as the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Sriramgiri Spinning Mills Limited, the Corporate Debtor, for defaulting on a loan repayment of Rs. 72,11,36,630.72. The Financial Creditor had sanctioned various credit facilities to the Corporate Debtor, including term loans and cash credit facilities, to support the construction of a factory building and the purchase of plant and machinery. The Corporate Debtor faced financial difficulties due to a slump in the spinning industry and approached the Board for Industrial and Financial Reconstruction (BIFR). The Financial Creditor also initiated recovery proceedings before the Debt Recovery Tribunal (DRT) and issued a
…The Oriental Bank of Commerce sanctioned a term loan of Rs. 29.50 Crores to Sriramgiri Spinning Mills Limited on 30.11.2006 for constructing a factory building and purchasing plant and machinery. Additional credit facilities, including cash credit and further term loans, were sanctioned over time. The Corporate Debtor defaulted on repayments, leading the Financial Creditor to issue a recall notice on 30.10.2015 under Section 13(2) of the SARFAESI Act. The Corporate Debtor approached BIFR, which declared it a sick industry on 24.09.2015. The Financial Creditor also initiated proceedings before the DRT for recovery of Rs. 67.79 Crores. The Corporate Debtor proposed a One Time Settlement (OTS) for Rs. 25 Crores, but failed to comply with the terms. The Financial Creditor
…Oriental Bank of Commerce sanctioned a term…
Financial Creditor…