Mauritius-based GuarantCo has filed a petition for insolvency against Calcom Cement India (Dalmia Cement (Bharat)), regarding an alleged non-payment of around INR1bn (US$14m).
GuarantCo, a financial creditor of the cement manufacturer, filed the insolvency petition against the company at the Guwahati bench of the National Company Law Tribunal (NCLT) under Section 7 of the Insolvency and Bankruptcy Code (IBC), according to The Financial Express. According to the petition, there was a total default of around INR1bn by Calcom Cement as of 27 September 2019.
“In and around 2007 Calcom Cement India approached the financial creditor to stand as guarantor for the loan facility(ies) it had availed from various Indian banks,” said the company in its petition.
Following this, on the basis of demand notices issued by Axis Bank and HDFC Bank, GuarantCo reportedly paid the two banks, respectively. “Thereafter, the financial creditor demanded the payment so made to Axis Bank and HDFC Bank pursuant to their invocation of Guarantee from the Corporate Debtor in terms of the Amended and Restated Recourse Agreement. However, the corporate debtor failed to honour its commitment in terms of the Amended and Restated Recourse Agreement,” according to the petition.
A spokesperson for Dalmia Cement has since refuted the claims of a defaulted payment. “Calcom Cement has not committed any default in making payments to Guarantco Ltd. It may be noted that the 100 per cent outstanding bank loans of more than INR5bn of Calcom have also been pre-paid before time,” said a spokesperson for Dalmia Cement.
