Six Indian banks have received their courtroom battle in London to be paid $2.1 billion by a Singapore subsidiary of the GVK group after it defaulted on its mortgage repayments.
Dame Clare Moulder within the excessive courtroom in London dominated that the Financial institution of Baroda, Financial institution of India, Canara Financial institution, ICICI Financial institution, Indian Abroad Financial institution and Axis Financial institution are entitled to $1 billion in curiosity and $1.1 billion of the principal sum owing.
The Indian banks (aside from Axis Financial institution which is the safety agent) in September 2011 supplied GVK Coal Builders (Singapore) with a $1 billion mortgage, a $35 million letter of credit score facility and in March 2014, a $250 million mortgage. GVK drew down on the $1 billion, took $160 million from the 2014 mortgage, after which breached its cost obligations.
After calls for for cost had been unsuccessful, the six banks introduced the case in opposition to GVK Coal Builders within the business courtroom of the excessive courtroom in addition to in opposition to varied corporations inside the GVK Group in Singapore and India – Black Gold Ventures, Cool Water Ventures and Concord Waters – that are all of the guarantors of the mortgage.
The courtroom heard that GVK had meant to make use of the loans to part-finance coal mining tasks in Australia however didn’t get hold of a mining licence. In its defence, GVK mentioned that “the deterioration out there for coal, the shortage of third social gathering funding and authorized challenges to the mining tasks within the courts of Queensland meant that little or no progress was made to develop the Hancock Corporations’ mining property”. It additionally blamed the downturn within the Indian infrastructure sector on the time.
Karishma Vora, barrister for the banks, and Gautam Bhattacharyya, accomplice at Reed Smith – the solicitors representing the banks – mentioned, “We’re delighted to have secured a powerful and landmark victory for our Indian banking shoppers in a matter of such business significance.”
Dame Clare Moulder within the excessive courtroom in London dominated that the Financial institution of Baroda, Financial institution of India, Canara Financial institution, ICICI Financial institution, Indian Abroad Financial institution and Axis Financial institution are entitled to $1 billion in curiosity and $1.1 billion of the principal sum owing.
The Indian banks (aside from Axis Financial institution which is the safety agent) in September 2011 supplied GVK Coal Builders (Singapore) with a $1 billion mortgage, a $35 million letter of credit score facility and in March 2014, a $250 million mortgage. GVK drew down on the $1 billion, took $160 million from the 2014 mortgage, after which breached its cost obligations.
After calls for for cost had been unsuccessful, the six banks introduced the case in opposition to GVK Coal Builders within the business courtroom of the excessive courtroom in addition to in opposition to varied corporations inside the GVK Group in Singapore and India – Black Gold Ventures, Cool Water Ventures and Concord Waters – that are all of the guarantors of the mortgage.
The courtroom heard that GVK had meant to make use of the loans to part-finance coal mining tasks in Australia however didn’t get hold of a mining licence. In its defence, GVK mentioned that “the deterioration out there for coal, the shortage of third social gathering funding and authorized challenges to the mining tasks within the courts of Queensland meant that little or no progress was made to develop the Hancock Corporations’ mining property”. It additionally blamed the downturn within the Indian infrastructure sector on the time.
Karishma Vora, barrister for the banks, and Gautam Bhattacharyya, accomplice at Reed Smith – the solicitors representing the banks – mentioned, “We’re delighted to have secured a powerful and landmark victory for our Indian banking shoppers in a matter of such business significance.”
