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Corporate Guarantees Backed By Loans Fall Under ‘Financial Debt’ Under IBC: Supreme Court

New Delhi, Apr 29 (KNN) The Supreme Court has held that a corporate guarantee furnished by a company to secure another company’s borrowing, when backed by arrangements such as hypothecation, qualifies as a “financial debt” under the Insolvency and Bankruptcy Code, 2016 (IBC). A Bench comprising Justices Pamidighantam Sri Narasimha and Alok Aradhe delivered the…

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