TNN
Delhi/Mumbai: Banks can look forward to improved recovery prospects from promoters of defaulting companies who have provided personal guarantees for corporate loans. The Supreme Court on Friday upheld the government notification of November 2019, which allowed banks to enforce the personal guarantee of the promoter if lenders are not able to fully recover their dues after the insolvency resolution process.
Among the defaulting corporate houses that are referred for insolvency proceedings, there are a host of promoters ranging from Sanjay Singhal of Bhushan Power & Steel to Anil Ambani, Venugopal Dhoot, Atul Punj and the Ruias of Essar, who have provided a personal guarantee to their loans. For these promoters. who have already los…
Read the full article at: https://timesofindia.indiatimes.com/business/india-business/bankruptcy-will-not-void-personal-guarantees-sc/articleshow/82841798.cms
