The case involves an application filed by IDBI Bank Ltd., the Financial Creditor (FC), under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), to initiate the Corporate Insolvency Resolution Process (CIRP) against GVK Energy Limited, the Corporate Guarantor (CG) for GVK Power (Goindwal Sahib) Ltd (GVK-Goindwal), the Principal Borrower. The FC had granted financial assistance to GVK-Goindwal, which defaulted on its repayment obligations, leading to its account being classified as a Non-Performing Asset (NPA). The FC then recalled the credit facility and issued a notice to the CG to pay the outstanding amounts. The CG raised objections, including limitation, the use of IBC as a tool for debt recovery, and the resolution of GVK-Goindwal. The FC refuted these
…IDBI Bank Ltd. (Financial Creditor) extended financial assistance to GVK-Goindwal (Principal Borrower), including a Rupee Term Loan of Rs 733.85 crore and working capital limits of Rs 153.75 crore. GVK-Goindwal defaulted on its repayment obligations, leading to its account being classified as an NPA on 28.02.2018. The Financial Creditor recalled the credit facility and issued a demand notice dated 08.02.2019 to GVK Energy Limited (Corporate Guarantor) for Rs 989.66 crores. GVK-Goindwal was admitted into CIRP on 10.10.2022, and the Financial Creditor filed a claim for Rs 1412.80 crores. The Resolution Plan was approved on 22.12.2023, and the Financial Creditor realized Rs 306.02 crores, reducing the outstanding debt. The Financial Creditor filed an application under
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GVK-Goindwal's account was classified as a…
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The case involves an application filed by IDBI Bank Ltd., the Financial Creditor (FC), under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), to initiate the Corporate Insolvency Resolution Process (CIRP) against GVK Energy Limited, the Corporate Guarantor (CG) for GVK Power (Goindwal Sahib) Ltd (GVK-Goindwal), the Principal Borrower. The FC had granted financial assistance to GVK-Goindwal, which defaulted on its repayment obligations, leading to its account being classified as a Non-Performing Asset (NPA). The FC then recalled the credit facility and issued a notice to the CG to pay the outstanding amounts. The CG raised objections, including limitation, the use of IBC as a tool for debt recovery, and the resolution of GVK-Goindwal. The FC refuted these
…IDBI Bank Ltd. (Financial Creditor) extended financial assistance to GVK-Goindwal (Principal Borrower), including a Rupee Term Loan of Rs 733.85 crore and working capital limits of Rs 153.75 crore. GVK-Goindwal defaulted on its repayment obligations, leading to its account being classified as an NPA on 28.02.2018. The Financial Creditor recalled the credit facility and issued a demand notice dated 08.02.2019 to GVK Energy Limited (Corporate Guarantor) for Rs 989.66 crores. GVK-Goindwal was admitted into CIRP on 10.10.2022, and the Financial Creditor filed a claim for Rs 1412.80 crores. The Resolution Plan was approved on 22.12.2023, and the Financial Creditor realized Rs 306.02 crores, reducing the outstanding debt. The Financial Creditor filed an application under
…GVK-Goindwal's account was classified as a…
The Financial Creditor…