Indian Overseas Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Krish Ispat Company Limited, the Corporate Debtor. The petition was filed due to the Corporate Debtor's default in payment of Rs. 83,92,18,604 as of April 30, 2022, with the date of default mentioned as March 31, 2017. The Financial Creditor had advanced various loan facilities to the Corporate Debtor, including cash credit and term loans, which were subsequently enhanced and reduced over time. The Corporate Debtor faced financial difficulties, including a flood in 2016 that damaged its factory premises, leading to insurance claims and attempts to negotiate a rehabilitation package.
Indian Overseas Bank (IOB) extended credit facilities to Krish Ispat Company Limited. The initial loan included Rs. 11,00,00,000 as a cash credit facility and Rs. 2,75,00,000 and Rs. 79,00,000 as Term Loan I and II facilities, respectively, sanctioned on June 1, 2012. These facilities were enhanced on September 12, 2013, increasing the cash credit to Rs. 20,00,00,000 and adjusting the term loans. Further adjustments were made on October 6, 2015, increasing the cash credit to Rs. 30,00,00,000 and modifying the term loans. The Corporate Debtor stopped payments in 2017, leading IOB to classify the account as a Non-Performing Asset (NPA) effective March 31, 2017. IOB issued a notice under section 13(2) of the SARFAESI Act, 2002, on April 6, 2017. The Corporate Debtor's
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Indian Overseas Bank sanctioned initial loan…
The loan facilities were enhanced, increasing…
Indian Overseas Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Krish Ispat Company Limited, the Corporate Debtor. The petition was filed due to the Corporate Debtor's default in payment of Rs. 83,92,18,604 as of April 30, 2022, with the date of default mentioned as March 31, 2017. The Financial Creditor had advanced various loan facilities to the Corporate Debtor, including cash credit and term loans, which were subsequently enhanced and reduced over time. The Corporate Debtor faced financial difficulties, including a flood in 2016 that damaged its factory premises, leading to insurance claims and attempts to negotiate a rehabilitation package.
Indian Overseas Bank (IOB) extended credit facilities to Krish Ispat Company Limited. The initial loan included Rs. 11,00,00,000 as a cash credit facility and Rs. 2,75,00,000 and Rs. 79,00,000 as Term Loan I and II facilities, respectively, sanctioned on June 1, 2012. These facilities were enhanced on September 12, 2013, increasing the cash credit to Rs. 20,00,00,000 and adjusting the term loans. Further adjustments were made on October 6, 2015, increasing the cash credit to Rs. 30,00,00,000 and modifying the term loans. The Corporate Debtor stopped payments in 2017, leading IOB to classify the account as a Non-Performing Asset (NPA) effective March 31, 2017. IOB issued a notice under section 13(2) of the SARFAESI Act, 2002, on April 6, 2017. The Corporate Debtor's
…Indian Overseas Bank sanctioned initial loan…
The loan facilities were enhanced, increasing…