DBS Bank India Limited filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Manav Investment and Trading Company Limited, alleging default in payment of Rs. 10,06,54,436. The Corporate Debtor is the promoter holding company of Kerosam Group and has shareholdings in Kerosam Industries Limited and Birla Tyres Limited. The Financial Creditor extended a working capital facility to Kesoram Industries Limited (KIL), which was later partly transferred to Birla Tyres Limited (BTL) after a demerger. The Corporate Debtor provided a promoter undertaking guaranteeing the debt. After BTL defaulted, the Financial Creditor invoked the guarantee and sold pledged shares of BTL held by the Corporate Debtor. However, a balance amount remained due.
DBS Bank India Limited (Financial Creditor) extended a working capital facility to Kesoram Industries Limited (KIL). KIL's tyre business was demerged into Birla Tyres Limited (BTL). Part of the working capital facility was transferred to BTL. Manav Investment and Trading Company Limited (Corporate Debtor) is the promoter holding company of Kerosam Group and has shareholdings in Kerosam Industries Limited and Birla Tyres Limited. The Corporate Debtor executed a promoter undertaking in favor of the Financial Creditor, guaranteeing the debt. BTL defaulted on the working capital facility. The Financial Creditor issued a notice of default and invoked the promoter undertaking. The Financial Creditor sold pledged shares of BTL held by the Corporate Debtor, realizing a portion
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DBS Bank India Limited filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Manav Investment and Trading Company Limited, alleging default in payment of Rs. 10,06,54,436. The Corporate Debtor is the promoter holding company of Kerosam Group and has shareholdings in Kerosam Industries Limited and Birla Tyres Limited. The Financial Creditor extended a working capital facility to Kesoram Industries Limited (KIL), which was later partly transferred to Birla Tyres Limited (BTL) after a demerger. The Corporate Debtor provided a promoter undertaking guaranteeing the debt. After BTL defaulted, the Financial Creditor invoked the guarantee and sold pledged shares of BTL held by the Corporate Debtor. However, a balance amount remained due.
DBS Bank India Limited (Financial Creditor) extended a working capital facility to Kesoram Industries Limited (KIL). KIL's tyre business was demerged into Birla Tyres Limited (BTL). Part of the working capital facility was transferred to BTL. Manav Investment and Trading Company Limited (Corporate Debtor) is the promoter holding company of Kerosam Group and has shareholdings in Kerosam Industries Limited and Birla Tyres Limited. The Corporate Debtor executed a promoter undertaking in favor of the Financial Creditor, guaranteeing the debt. BTL defaulted on the working capital facility. The Financial Creditor issued a notice of default and invoked the promoter undertaking. The Financial Creditor sold pledged shares of BTL held by the Corporate Debtor, realizing a portion
…Working Capital…
Scheme of arrangement sanctioned by the…