The National Company Law Tribunal (NCLT) Mumbai Bench has admitted a Corporate Insolvency Resolution Process (CIRP) plea filed by Bank of India against Distribution Logistics Infrastructure Private Limited holding that a financial creditor cannot be compelled to await conclusion of consortium led One Time Settlement (OTS) negotiations once debt and default stand established.
The Financial Creditor submitted that various credit facilities including term loans and FITL facilities were sanctioned to the Corporate Debtor under consortium arrangements from 2013 onwards. The debt was subsequently restructured multiple times including under a Master Restructuring Agreement dated June 26, 2021. However, the Corporate Debtor …