Aditya Birla Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Siti Broadband Services Private Limited, citing a default in payment of a financial debt amounting to Rs. 4,38,50,997. The loan was sanctioned based on a Facility Agreement dated 26.02.2020, with Siti Networks Limited as a co-borrower. The applicant contended that Siti Networks Limited's default triggered a cross-default clause, leading to the recall of the entire loan facility advanced to Siti Broadband Services Private Limited.
Aditya Birla Finance Limited ('Applicant') sought to initiate Corporate Insolvency Resolution Process (CIRP) against Siti Broadband Services Private Limited ('Corporate Debtor') under Section 7 of the Insolvency and Bankruptcy Code, 2016. The claim was based on a financial debt of Rs. 4,38,50,997. A term loan of Rs. 5,00,00,000 was sanctioned to the Corporate Debtor and its group company, Siti Networks Limited ('Co-Borrower'), through a Facility Agreement dated 26.02.2020. The loan was to be repaid in 19 quarterly installments after a moratorium. The Applicant contended that the Co-Borrower defaulted on its loan repayment obligations from November 2021. Clause 19.5 of the Facility Agreement stipulated that a default by any group company would trigger an event of
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Facility Agreement executed between Aditya…
Siti Networks Limited…
Aditya Birla Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Siti Broadband Services Private Limited, citing a default in payment of a financial debt amounting to Rs. 4,38,50,997. The loan was sanctioned based on a Facility Agreement dated 26.02.2020, with Siti Networks Limited as a co-borrower. The applicant contended that Siti Networks Limited's default triggered a cross-default clause, leading to the recall of the entire loan facility advanced to Siti Broadband Services Private Limited.
Aditya Birla Finance Limited ('Applicant') sought to initiate Corporate Insolvency Resolution Process (CIRP) against Siti Broadband Services Private Limited ('Corporate Debtor') under Section 7 of the Insolvency and Bankruptcy Code, 2016. The claim was based on a financial debt of Rs. 4,38,50,997. A term loan of Rs. 5,00,00,000 was sanctioned to the Corporate Debtor and its group company, Siti Networks Limited ('Co-Borrower'), through a Facility Agreement dated 26.02.2020. The loan was to be repaid in 19 quarterly installments after a moratorium. The Applicant contended that the Co-Borrower defaulted on its loan repayment obligations from November 2021. Clause 19.5 of the Facility Agreement stipulated that a default by any group company would trigger an event of
…Facility Agreement executed between Aditya…
Siti Networks Limited…