The Jammu & Kashmir Bank Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against Vinayak Rathi Steels Rolling Mills Pvt. Ltd. The Financial Creditor (FC) claimed that the Corporate Debtor (CD) had defaulted on its loan obligations. The FC had sanctioned various credit facilities to the CD over the years, which were secured by personal guarantees and mortgages. The CD admitted to availing the credit facilities but argued that the FC had taken possession of a property and was realizing rent from it, which should be sufficient to liquidate the debt. The CD also claimed that the FC had not disclosed the realization of rent and had suppressed material facts.
The Jammu & Kashmir Bank Ltd. (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Vinayak Rathi Steels Rolling Mills Pvt. Ltd. (Corporate Debtor). The Financial Creditor had sanctioned a Term Loan Facility of Rs. 19 Crores, Cash Credit Facility of Rs. 12.50 Crores, and Inland Letter of Credit/Foreign Letter of Credit/Bank Guarantee of Rs. 1.50 Crores in 2010. The Corporate Debtor requested enhancements to the Cash Credit Facility in 2013 and 2015, which were sanctioned. In 2016, the Corporate Debtor requested a further enhancement and a fresh Bank Guarantee Facility. The Corporate Debtor executed various security documents, including letters of
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Financial Creditor sanctioned Term Loan…
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The Jammu & Kashmir Bank Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against Vinayak Rathi Steels Rolling Mills Pvt. Ltd. The Financial Creditor (FC) claimed that the Corporate Debtor (CD) had defaulted on its loan obligations. The FC had sanctioned various credit facilities to the CD over the years, which were secured by personal guarantees and mortgages. The CD admitted to availing the credit facilities but argued that the FC had taken possession of a property and was realizing rent from it, which should be sufficient to liquidate the debt. The CD also claimed that the FC had not disclosed the realization of rent and had suppressed material facts.
The Jammu & Kashmir Bank Ltd. (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Vinayak Rathi Steels Rolling Mills Pvt. Ltd. (Corporate Debtor). The Financial Creditor had sanctioned a Term Loan Facility of Rs. 19 Crores, Cash Credit Facility of Rs. 12.50 Crores, and Inland Letter of Credit/Foreign Letter of Credit/Bank Guarantee of Rs. 1.50 Crores in 2010. The Corporate Debtor requested enhancements to the Cash Credit Facility in 2013 and 2015, which were sanctioned. In 2016, the Corporate Debtor requested a further enhancement and a fresh Bank Guarantee Facility. The Corporate Debtor executed various security documents, including letters of
…Financial Creditor sanctioned Term Loan…
Last payment made by…