Axis Bank Ltd. instituted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Zenith Steel Industries Pvt. Ltd., a mid-sized integrated steel manufacturer operating plants in Haryana and Uttar Pradesh. The financial creditor claimed an aggregate default of Rs. 142.87 crore comprising term loan facilities, cash credit limits, and interest thereon that had remained unpaid for more than ninety days as per RBI norms.
…Zenith Steel Industries Pvt. Ltd. was incorporated in 2008 and operated rolling mill and galvanizing lines with installed capacity of approximately 4.5 lakh tonnes per annum. Axis Bank sanctioned a consortium-led facility in 2016 which was later novated to Axis as sole lender for certain tranches.
Between 2019 and 2022, the company faced severe headwinds from volatile coking coal prices, supply chain disruptions, and labour unrest at its Ghaziabad unit. Quarterly financial statements reflected erosion in net worth though operations continued on a reduced shift basis.
…Sign in to view the parties.
Axis Bank classifies Zenith Steel accounts as…
Financial creditor approaches NCLT New Delhi…
Sign in to view related legal provisions.
Axis Bank Ltd. instituted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Zenith Steel Industries Pvt. Ltd., a mid-sized integrated steel manufacturer operating plants in Haryana and Uttar Pradesh. The financial creditor claimed an aggregate default of Rs. 142.87 crore comprising term loan facilities, cash credit limits, and interest thereon that had remained unpaid for more than ninety days as per RBI norms.
…Zenith Steel Industries Pvt. Ltd. was incorporated in 2008 and operated rolling mill and galvanizing lines with installed capacity of approximately 4.5 lakh tonnes per annum. Axis Bank sanctioned a consortium-led facility in 2016 which was later novated to Axis as sole lender for certain tranches.
Between 2019 and 2022, the company faced severe headwinds from volatile coking coal prices, supply chain disruptions, and labour unrest at its Ghaziabad unit. Quarterly financial statements reflected erosion in net worth though operations continued on a reduced shift basis.
…Axis Bank classifies Zenith Steel accounts as…
Financial creditor approaches NCLT New Delhi…
Sign in to view related legal provisions.