Debt

Debt financing

SBI moves NCLT against two SPVs of Essel Infraprojects

Economic Times  

State Bank of India has moved the National Company Law Tribunal (NCLT) against Essel Infraprojects for recovery of debts under the Insolvency and Bankruptcy Code (IBC). SBI had loaned around INR 100 crore to two of Essel's SPVs, which were backed by corporate guarantees of Essel Infraprojects. The SPVs are involved in separate legal proceedings with SBI. One of them, Coruscation Vidyut Vitaran (Ujjain), formerly Essel Vidyut Vitaran (Ujjain), is facing proceedings at the Debts Recovery Tribunal under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act. The second SPV, which has a solid waste management contract in Jabalpur, is facing insolvency proceedings at NCLT. The SPV was earlier known as Essel Jabalpur MSW.