Vikas WSP files court case for USD 40 mn against customer
Vikas WSP announced that the Company has been availing Working Capital Facilities for Export from Punjab National Bank, Union Bank of India and Bank of India under consortium and a Working Capital aggregating to Rs. 177.44 crore is outstanding as on 27 May 2016 against these facilities.The Company had settled a legal suit in US court for USD 80 millions (Rs 494 crore) in the year 2014-15 but after paying USD 40 million, the customer has stopped paying the installment in July'15. Consequently due to non recovery of the said dues to the extent of USD 40 million approximately Rs 268 crores, the Company has not been able to make payment to banks on a timely basis.
These bankers have declared the company's banking facility as non performing assets (NPA) mainly on account of non realization of export receipts and also served a notice to the Directors of the Company for declaring as will full defaulter.
However, the Company has started making payment of dues vide its letter dated 20 June 2016 at its own and the Company has filed a court case for USD 40 million against the customer.
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