B.S.V. Prakash Kumar, Member - (1.) It is a company petition filed u/s. 7 of The Insolvency & Bankruptcy Code 2016 by a financial creditor, viz. Edelweiss Asset Reconstruction Co. Ltd. (herein after called as 'financial creditor') for initiating Corporate Insolvency Resolution Process against a corporate debtor viz. Bharat Defence and Infrastructure Ltd. (herein after called as corporate debtor), which has outstanding debt of about Rs. 9000 crores, out of which, the loan IDBI Bank Ltd. (IDBI) given as Working Capital Facility to the Corporate Debtor has been assigned to this Applicant. When this Corporate Debtor defaulted (Exhibit-"5-B") in making repayment of Rs. 591,95,73,112 as on March 15, 2017, this financial creditor has taken out this application for initiating corporate insolvency resolution process against this Corporate Debtor Company. Notice has been duly served upon the corporate debtor and the corporate debtor availed full opportunity in making its side submissions.
(2.) The creditor submits that this debtor company is in shipping business, to meet its fund requirements, IDBI (assignor) granted loan to it as working capital facility (WCF) of Rs. 450 crores under the working capital consortium agreement dated March 30, 2010 which has been modified from time to time. On account of default in repayment of the WCF by the corporate debtor, the dues outstanding under the WCF were restructured and certain additional facilities were granted to the corporate debtor by the Banks including IDBI under Corporate Debt Restructuring (CDR) scheme issued by Reserve Bank of India vide Master Restructure Agreement dated June 30, 2012 as amended from time to time. The details of the debts granted to the corporate debtor are as follows:- 1. Debts were granted to the debtor company as the working capital facility of Rs. 450 crores under the working capital consortium agreement dated March 30, 2010 as amended by supplemental working capital consortium agreements dated September 30, 2010 and September 02, 2011. The original WCF is comprised of fund based limits {cash credits) and non-fund based limits (including bank guarantees under letters of credit). It was later reconstructed under CDR scheme by Master Restructuring Agreement (MRA) dated June 30, 2012 executed inter alia among the corporate debtor and IDBI from time to time for a total facility amounting to Rs. 615.12 crores which includes the following:- 1. Working capital facility (including cash credit facility, overdue due to interest, penal commission and crystallized non-fund based limits i.e. development of bank guarantees and letters of credit) of Rs. 319.81 crores. 2. Working capital-additional cash credit facility (including inter changeability allowed from non-fund based to fund based) of Rs. 285 crores.
(3.) Priority term loan facilities of Rs. 6.24 crores for vessel completion.;