The National Company Law Tribunal (NCLT), Hyderabad Bench, on Wednesday initiated insolvency proceedings against GVK Energy Limited, a corporate guarantor for GVK Power (Goindwal Sahib) Ltd, following a petition filed by IDBI Bank under Section 7 of the Insolvency and Bankruptcy Code (IBC). The tribunal dismissed GVK Energy’s objections, ruling that the default exceeded ₹1,106 crore and that the corporate guarantee remained enforceable despite the resolution of the principal borrower.
Key Details of the Case
IDBI Bank, part of a lender consortium, had extended a term loan of ₹733.85 crore and working capital facilities of ₹153.75 crore to GVK Power for a thermal power project in Punjab. GVK Energy acted as a…
