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 under 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 in the agreement, leading to the recall of the entire loan facility advanced to Siti Broadband Services Private Limited.
Aditya Birla Finance Limited ('Applicant') sanctioned a term loan of Rs. 5,00,00,000 to Siti Broadband Services Private Limited ('Corporate Debtor') and Siti Networks Limited ('Co-Borrower') under a Facility Agreement dated 26.02.2020. The loan was to be repaid in 19 quarterly installments after a moratorium of 5 quarters. From November 2021, the Co-Borrower defaulted on its loan repayment obligations. The Facility Agreement contained a cross-default clause (Clause 19.5), stating that if any member of the group is unable to pay its financial indebtedness, it would result in an event of default. The Financial Creditor issued a Notice of Recall dated 24.05.2022, recalling the entire loan facility and demanding payment of Rs. 4,43,04,986. The Corporate Debtor did not
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Facility Agreement executed between Aditya Birla…
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 under 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 in the agreement, leading to the recall of the entire loan facility advanced to Siti Broadband Services Private Limited.
Aditya Birla Finance Limited ('Applicant') sanctioned a term loan of Rs. 5,00,00,000 to Siti Broadband Services Private Limited ('Corporate Debtor') and Siti Networks Limited ('Co-Borrower') under a Facility Agreement dated 26.02.2020. The loan was to be repaid in 19 quarterly installments after a moratorium of 5 quarters. From November 2021, the Co-Borrower defaulted on its loan repayment obligations. The Facility Agreement contained a cross-default clause (Clause 19.5), stating that if any member of the group is unable to pay its financial indebtedness, it would result in an event of default. The Financial Creditor issued a Notice of Recall dated 24.05.2022, recalling the entire loan facility and demanding payment of Rs. 4,43,04,986. The Corporate Debtor did not
…Facility Agreement executed between Aditya Birla…
Siti Networks Limited…