The court dismissed the company’s claims that with GVK Power’s resolution plan going through the debt had been extinguished.
| Photo Credit:
ANDREW KELLY
National Company Law Tribunal’s Hyderabad bench has permitted insolvency proceedings to be initiated against GVK Energy, following a petition filed by lender IDBI Bank.
GVK Energy, a subsidiary of GVK Power & Infrastructure, was corporate guarantor for debt incurred by GVK Power for a thermal power project in the Punjab.
As part of a consortium, IDBI had extended term loan of around ₹734 crore and working capital of ₹154 crore to GVK Power, which defaulted in repaying the loan and in 2018 the account…
