Canara Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against ARS Energy Private Limited, citing a default on financial debt. The corporate debtor, originally ARS Metals Limited, underwent a name change and is engaged in power generation through a coal-fired thermal power plant. The financial creditor claimed a total default amount of Rs. 110,57,11,831.97. The corporate debtor argued that the default was due to force majeure events, including a surge in coal prices and the COVID-19 pandemic, which led to the shutdown of its power plant. The corporate debtor also claimed that the consortium of banks, including Canara Bank, did not consider its restructuring proposals
…Canara Bank, a financial creditor, filed an application to initiate CIRP against ARS Energy Private Limited, a corporate debtor involved in power generation. The corporate debtor had approached the financial creditor and other consortium banks for financial assistance, including working capital overdraft, GECL 2.0, and term loans. The total amount claimed by the financial creditor as financial debt was Rs. 110,57,11,831.97. The dates of default for various accounts ranged from September 2022 to October 2022. The corporate debtor argued that it had faced financial difficulties due to force majeure events, including a surge in coal prices and the COVID-19 pandemic, leading to the shutdown of its power plant. The corporate debtor also claimed that the consortium of banks
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ARS Metals Limited was originally…
Hon'ble Madras High Court ordered the…
Canara Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against ARS Energy Private Limited, citing a default on financial debt. The corporate debtor, originally ARS Metals Limited, underwent a name change and is engaged in power generation through a coal-fired thermal power plant. The financial creditor claimed a total default amount of Rs. 110,57,11,831.97. The corporate debtor argued that the default was due to force majeure events, including a surge in coal prices and the COVID-19 pandemic, which led to the shutdown of its power plant. The corporate debtor also claimed that the consortium of banks, including Canara Bank, did not consider its restructuring proposals
…Canara Bank, a financial creditor, filed an application to initiate CIRP against ARS Energy Private Limited, a corporate debtor involved in power generation. The corporate debtor had approached the financial creditor and other consortium banks for financial assistance, including working capital overdraft, GECL 2.0, and term loans. The total amount claimed by the financial creditor as financial debt was Rs. 110,57,11,831.97. The dates of default for various accounts ranged from September 2022 to October 2022. The corporate debtor argued that it had faced financial difficulties due to force majeure events, including a surge in coal prices and the COVID-19 pandemic, leading to the shutdown of its power plant. The corporate debtor also claimed that the consortium of banks
…ARS Metals Limited was originally…
Hon'ble Madras High Court ordered the…