An action to declare bankruptcy was going on against Siva Industries and Holding, a Chennai-based company. Meanwhile, the bank was offered a settlement on behalf of the company, which has been accepted.
Siva Industries and Holdings
Action is taken against the company for not returning the loan taken from the bank. Many times it is declared bankrupt. Similar was the case with Siva Industries and Holdings, a Chennai-based company. The company owes Rs 5000 crore, but the matter was settled out instead of going to court. The surprising thing is that the bank has agreed to the offer of only 500 crore rupees. Experts have called it a unique case.
This has been confirmed by IDBI Bank, one of the company’s financial creditors. According to the media report, the bank said in a statement that most of the creditors voted in favor of withdrawing the insolvency proceedings against the company. This process took place last week. Settlement has been done due to this. Right now the approval of the National Company Law Tribunal in this matter is awaited. It is said that to eliminate all the claims of dues, Shiva Company had offered 500 crore rupees to the banks, which was mostly agreed upon. Due to which the company survived the action of being declared bankrupt. Creditors of the company include State Bank of India and Malaysia’s Maxis Communications BHD.
Have a relationship with Barista and Aircel
C Sivasankaran, owner of Siva Industries and Holding Company, is a Chennai-based businessman. He has played an important role in the establishment of many well-known and big companies. They were founded by the telecom company Aircel and the popular coffee chain Barista in the country. He faced a CBI inquiry in the IDBI loan case. Insolvency proceedings were initiated against Shiva Company in 2019.
The proposal of these companies was rejected
Like Siva, other companies had also proposed for settlement with the bank. Of which Tata Sons Company is also one. It had claimed arrears of Rs 863 crore but it was rejected by the company’s interim resolution professional. Similarly, many other companies also made offers to the promoters to settle the bank and financial institution case, which were rejected.