Oriental Bank of Commerce (OBC) has filed Insolvency & Bankruptcy Application u/s 7 of the Insolvency and Bankruptcy Code, 2016 against L&T Halol – Shamlaji Tollway Ltd for default in repayment of Rs 76,68,75,126/- as on December 27, 2018.
OBC had disbursed Rs 155 crore in 2009 under a common loan agreement by a consortium of banks and institutions which included Allahabad Bank (as lenders’ representative and escrow bank).
The loan account turned NPA in 2016 and the financial creditors, along with other lenders, entered into a Master Restructuring Agreement in 2017 with L&T Halol-Shamlaji Tollway for conversion of debt of Rs 405.83 crore into equity, out of total debt of Rs 1,003.55 crore payable to the consortium of banks. As the company failed to comply with the conditions mentioned in the Master Restructuring Agreement, OBC had given a recall notice on September 12, 2018, demanding repayment of part-B debt of Rs 78.27 crore within seven days.
