GVK Power And Infrastructure
GVK Power and Infrastructure Limited (GVKPIL) will face insolvency proceedings due to its failure to repay bank loans. The Hyderabad bench of the National Company Law Tribunal (NCLT) passed this order on a petition filed by a group of borrowers led by ICICI Bank Limited.
The effect of this order is visible on the company’s stock. The company’s stock had a lower circuit of 5 per cent on Tuesday. And its shares came down to Rs 9.63. The 52-week high of the stock was Rs 17. While the lowest level was Rs 2.45.
When was the loan taken
GVKPIL told the stock market that this loan was originally taken more than a decade ago by GVK Coal Developers (Singapore) Pte Ltd, for which GVKPIL had taken a guarantee. The NCLT bench issued the order on July 12, which was made public on Monday. ICICI Bank had filed the petition in 2022. In the order, NCLT appointed Satish Kumar Gupta as interim resolution professional to manage the company.
Debt of $ 1.8 billion
According to the order, the corporate debtor admitted its liabilities and was to pay US $ 1.84 billion to the lenders by June 13, 2022. This includes principal amount of $1.13 billion, interest of $731.5 million and agency fees of $1.44 lakh. In view of the fluctuations in the company’s shares, BSE and NSE have put the stock under long term additional surveillance framework. This will protect investors from huge fluctuations.