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SBI moves to en-cash Ruias’ INR 15,000 crore guarantee - Report

Steel News - Published on Mon, 29 Apr 2019

Image Source: SteelGuru
Business Line reported that with the debt recovery process under the Insolvency and Bankruptcy Code getting delayed, State Bank of India has moved the Debt Recovery Tribunal to en-cash personal guarantees worth INR 15,000 crore extended by the promoters of Essar Steel. In one of the largest-ever personal guarantee cases filed in India, SBI has moved the tribunal in Ahmedabad with a suit against Mr Prashant Ruia and Mr Ravi Ruia, Essar Steel’s promoters, to recover the amount. A source said “SBI had invoked the personal guarantees of the Ruias about 6-8 months back and has now filed suit seeking an order from DRT. A DRT decree will lead to attachment of all personal assets of the Ruias in India and abroad.”

An Essar official, who did not want to be named, said the promoter guarantees are not at risk because the ongoing debt resolution process will repay at least 92% of the debt to the secured financial creditors. Under the insolvency process, admitted claims of secured financial creditors of Essar Steel amounted to INR 45,000 crore.

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Posted By : Rabi Wangkhem on Mon, 29 Apr 2019
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