State Bank of India, acting as the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Furnace Fabrica (India) Limited, the corporate debtor. The financial creditor, leading a consortium of lenders, had sanctioned a loan facility to the corporate debtor. The corporate debtor defaulted on its debt obligations, leading to the application for CIRP.
State Bank of India (SBI), acting as the lead member of a consortium of lenders including Standard Chartered Bank, Kotak Mahindra Bank, and Axis Bank, sanctioned a loan facility to Furnace Fabrica (India) Limited. The initial loan facility was Rs. 215 crores, part of a Rs. 288-crore credit limit established through a working capital consortium agreement on 2010-05-13. Kotak Mahindra Bank later exited the consortium, and SBI reduced the credit facility to Rs. 138 crore via a sanction/renewal letter dated 2017-03-03. The consortium was reconstituted with SBI, SCB, Axis Bank, and EXIM Bank on 2017-08-14, revising the total credit facility to Rs. 281 crore. Furnace Fabrica hypothecated its current assets on 2013-09-24. Directors A. Basheeruddin, Badri Prasad, Sudha Prasad,
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SBI reduced th…
State Bank of India, acting as the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Furnace Fabrica (India) Limited, the corporate debtor. The financial creditor, leading a consortium of lenders, had sanctioned a loan facility to the corporate debtor. The corporate debtor defaulted on its debt obligations, leading to the application for CIRP.
State Bank of India (SBI), acting as the lead member of a consortium of lenders including Standard Chartered Bank, Kotak Mahindra Bank, and Axis Bank, sanctioned a loan facility to Furnace Fabrica (India) Limited. The initial loan facility was Rs. 215 crores, part of a Rs. 288-crore credit limit established through a working capital consortium agreement on 2010-05-13. Kotak Mahindra Bank later exited the consortium, and SBI reduced the credit facility to Rs. 138 crore via a sanction/renewal letter dated 2017-03-03. The consortium was reconstituted with SBI, SCB, Axis Bank, and EXIM Bank on 2017-08-14, revising the total credit facility to Rs. 281 crore. Furnace Fabrica hypothecated its current assets on 2013-09-24. Directors A. Basheeruddin, Badri Prasad, Sudha Prasad,
…Execution of working…
SBI reduced th…