Comments
The National Company Law Tribunal (NCLT), Chennai Bench, has initiated insolvency process against L&T Halol - Shamlaji Tollway Ltd (L&T Halol) on a petition filed by Oriental Bank of Commerce. The bank alleged that the company had defaulted in repayment of ₹76.68 crore as on December 2018.
L&T Halol, a special purpose vehicle (SPV) of L&T Infrastructure Development Projects Ltd, however, denied the allegation. Even if there was a default, the bank on its own cannot initiate proceedings against the company, said information in the order by BSV Prakash Kumar, member (Judicial), NCLT Chemnai Bench.
The bank had disbursed a loan of around ₹155 crore in 2009. However, the company failed to make it standard account, following which the bank and other lenders entered into Master Restructuring Agreement in February 2017 to convert the debt of ₹405.82 crore into equity, out of total debt of ₹1,000 crore payable to the consortium of banks.
NCLT, Chennai Bench, in the order said the bank has proved the existence of debt and default. The Bench admitted the application for insolvency process, and also appointed Anil Kumar Birla as Interim Resolution Professional, the order said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.