In the first case of a lender taking over the assets of a defaulting company under the recent NPA ordinance, banks and financial institutions led by ICICI Bank have taken over the Vatwa unit of Mardia Chemicals Ltd (MCL) on November 27.
Institutions have a current exposure of around Rs 1,450 crore in MCL, of which the principal accounts for Rs 800 crore. The erstwhile ICICI had an exposure of around Rs 300 crore, while IDBI had an exposure of around Rs 83 crore.
Some of the other institutions which have an exposure in the company include the Unit Trust of India, IFCI, State Bank of India, Bank of India, Corporation Bank, HSBC and Bank of Baroda.
More From This Section
ICICI Bank took over the assets under Section 13(iv) of the Act through the chief metropolitan magistrate, Vatwa (outside Ahmedabad). As institutions had taken measures under this section, the pending BIFR proceedings stand abated. The company had over the years made five different references before the BIFR.
The Supreme Court (SC) had towards the end of October passed an interim order that secured creditors of MCL, will not able