The case revolves around a dispute regarding the nature of Compulsorily Convertible Debentures (CCDs) issued by IVRCL Chengapalli Tollways Ltd (ICTL), a subsidiary of IVRCL, to IFCI Limited. IFCI invested in ICTL's highway project through CCDs. When ICTL faced financial difficulties, IFCI invoked corporate guarantees of IVRCL and initiated Corporate Insolvency Resolution Process (CIRP). The Resolution Professional rejected IFCI's claim, treating the CCDs as equity rather than debt. This rejection was based on the Debenture Subscription Agreement (DSA) and the project's financial structure, where CCDs were considered part of the equity component. IFCI challenged this decision, arguing that the CCDs should be treated as debt due to ICTL's insolvency.
IFCI Limited invested in a highway project undertaken by IVRCL Chengapalli Tollways Ltd (ICTL), a subsidiary of IVRCL, through Compulsorily Convertible Debentures (CCDs). The Concession Agreement for the project was executed on 2010-03-25. The Debenture Subscription Agreement (DSA) was dated 2011-10-14, with IFCI subscribing to CCDs worth Rs. 125,00,00,000. The DSA included a 'put option' allowing IFCI to sell the CCDs to a third party if ICTL defaulted, but the principal obligation of IVRCL remained. ICTL faced financial difficulties, leading to a Corporate Insolvency Resolution Process (CIRP) initiated by both IFCI and the State Bank of India. IFCI's claim was rejected by the Resolution Professional on 2022-08-09, who treated the CCDs as equity based on the DSA and
…Sign in to view the parties.
Concession Agreement dated 25.03.2010 executed…
Debenture Subscription Agreement dated…
The case revolves around a dispute regarding the nature of Compulsorily Convertible Debentures (CCDs) issued by IVRCL Chengapalli Tollways Ltd (ICTL), a subsidiary of IVRCL, to IFCI Limited. IFCI invested in ICTL's highway project through CCDs. When ICTL faced financial difficulties, IFCI invoked corporate guarantees of IVRCL and initiated Corporate Insolvency Resolution Process (CIRP). The Resolution Professional rejected IFCI's claim, treating the CCDs as equity rather than debt. This rejection was based on the Debenture Subscription Agreement (DSA) and the project's financial structure, where CCDs were considered part of the equity component. IFCI challenged this decision, arguing that the CCDs should be treated as debt due to ICTL's insolvency.
IFCI Limited invested in a highway project undertaken by IVRCL Chengapalli Tollways Ltd (ICTL), a subsidiary of IVRCL, through Compulsorily Convertible Debentures (CCDs). The Concession Agreement for the project was executed on 2010-03-25. The Debenture Subscription Agreement (DSA) was dated 2011-10-14, with IFCI subscribing to CCDs worth Rs. 125,00,00,000. The DSA included a 'put option' allowing IFCI to sell the CCDs to a third party if ICTL defaulted, but the principal obligation of IVRCL remained. ICTL faced financial difficulties, leading to a Corporate Insolvency Resolution Process (CIRP) initiated by both IFCI and the State Bank of India. IFCI's claim was rejected by the Resolution Professional on 2022-08-09, who treated the CCDs as equity based on the DSA and
…Concession Agreement dated 25.03.2010 executed…
Debenture Subscription Agreement dated…