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Banks to invoke sureties given by promoters of 17 defaulting cos

Business Line  

Several banks, including SBI and Bank of Baroda, are moving to invoke the personal guarantees given by promoters of 17 defaulting companies including Punj Lloyd, Amtek Auto, ABG Shipyard, Videocon, Varun Shipping, and Lanco. They have approached the National Company Law Tribunal (NCLT). The banks have decided that for invoking the personal guarantees, only the lead lender in each case will go to the NCLT. In May, the Supreme Court upheld the amendment to the Insolvency and Bankruptcy Code that allowed lenders to invoke the personal guarantees of promoters to recover their dues.