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IDBI Bank secures $239-M debt judgment against Essar Group in London High Court

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IDBI Bank has secured a USD 239 million judgment in the commercial division of the High Court of London against a Cypriot subsidiary of India-based Essar Shipping Group, among one of the largest debt judgments obtained by an Indian bank in the English courts. IDBI had offered loans totalling USD 148 million with two Singapore registered companies – Varada Drilling One Pte Ltd and Varada Drilling Two Pte Ltd – for the construction of two jack up drilling rigs in March 2013. In July 2017, after the borrowers failed to make scheduled repayments, IDBI served a formal demand for repayment of the principal amount, contractual interest, default interest and fees. After further non-payment, the borrowers entered liquidation in Singapore and, in January 2020, proceedings commenced in the UK on behalf of IDBI.