Amid concerns of banks which are up for some significant haircut in big-ticket insolvency cases, Palogix Infrastructure, a railways infrastructure service provider has seen its fate been successfully decided at the National Company Law Tribunal (NCLT) with the lenders being able to find a buyer without haircut of the principal amount of debt. Creditors, led by ICICI Bank as well as others like Titagarh group, have unanimously approved JFC Finance as a buyer. The total debt level was about Rs 170 crore, including unpaid interest component, on which there would be haircut to the extent of about 25%," Binani said. Apart from raising Rs 25 crore each from IFC and Bessemer Venture Partners, it was also sanctioned Rs 111 crore by ICICI Bank. Difficult economic environment, however, put Palogix in financial difficulties, and by the end of 2016 it failed to pay up about Rs 32.22 crore to ICICI Bank, which approached the NCLT.

Source: dna March 09, 2018 00:44 UTC