ICICI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against VIL Limited, the corporate debtor. The application was based on the corporate debtor's default in repaying working capital facilities extended by ICICI Bank. The corporate debtor argued that there was no financial debt as defined under Section 5(8) of the IBC, 2016, and that the company was solvent. The applicant bank claimed total outstanding dues of around INR 463 million.
ICICI Bank Limited extended working capital facilities to VIL Limited, the corporate debtor, through various credit arrangement letters and master facility agreements. The facilities were enhanced over time, reaching INR 800.0 million, including an overdraft facility. The corporate debtor started defaulting on payments from May 2017. The account was classified as a Non-Performing Asset (NPA) on 30 September 2017. The total amount of default was Rs. 46,28,29,952.44/- as on 30.09.2018. The applicant filed copies of loan agreements, guarantee deeds, and other relevant documents. The corporate debtor argued that there was no financial debt and that the company was solvent due to inter-se fight and disagreement between the lenders. The applicant bank claimed total
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ICICI Bank extended working capital…
A credit facility agreement was entered into…
ICICI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against VIL Limited, the corporate debtor. The application was based on the corporate debtor's default in repaying working capital facilities extended by ICICI Bank. The corporate debtor argued that there was no financial debt as defined under Section 5(8) of the IBC, 2016, and that the company was solvent. The applicant bank claimed total outstanding dues of around INR 463 million.
ICICI Bank Limited extended working capital facilities to VIL Limited, the corporate debtor, through various credit arrangement letters and master facility agreements. The facilities were enhanced over time, reaching INR 800.0 million, including an overdraft facility. The corporate debtor started defaulting on payments from May 2017. The account was classified as a Non-Performing Asset (NPA) on 30 September 2017. The total amount of default was Rs. 46,28,29,952.44/- as on 30.09.2018. The applicant filed copies of loan agreements, guarantee deeds, and other relevant documents. The corporate debtor argued that there was no financial debt and that the company was solvent due to inter-se fight and disagreement between the lenders. The applicant bank claimed total
…ICICI Bank extended working capital…
A credit facility agreement was entered into…