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Anrak challenges SBI’s insolvency petition

Anrak Aluminium is a joint venture between India’s Penna group and UAE’s Ras Al Khaimah Investment Authority.

, ET Bureau|
Feb 22, 2018, 10.14 AM IST
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Anrak Aluminium has contested an insolvency petition filed by its lead lender State Bank of India against the company, claiming that there were no defaults as it had already entered into a compromise deal with lenders and also paid the instalments as agreed upon.
Indo-UAE joint venture Anrak Aluminium has contested an insolvency petition filed by its lead lender State Bank of India against the company, claiming that there were no defaults as it had already entered into a compromise deal with lenders and also paid the instalments as agreed upon.

Anrak Aluminium is a joint venture between India’s Penna group and UAE’s Ras Al Khaimah Investment Authority. The company in 2007 entered into an agreement with the Andhra Pradesh government to set up an aluminium plant and a smelter unit in the state.

In its petition filed before the National Company Law Tribunal’s Hyderabad bench on Tuesday, the aluminium maker said the banks at a joint lenders’ forum meeting months ago had agreed to settle their dues of Rs 4,000 crore exposure for around Rs 1,300 crore.

Prior to the compromise deal with lenders, Anrak Aluminium had defaulted on ?3,242 crore of rupee loans and $96 million (?622 crore at current exchange rate) of external commercial borrowings. The company informed the NCLT bench that it had already paid around ?150 crore in instalments as agreed under the compromise arrangement. Therefore, the loan account cannot be technically considered nonperforming anymore, it argued.

The lead lender, SBI, had sealed this compromise deal at the joint lenders’ meeting and also received the instalment payments as agreed upon, the petition said. However, for unexplained reasons, the state-owned bank subsequently moved the NCLT with an insolvency petition, it said.

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