Creditors are likely to scrap bankruptcy process of Chennai-based Siva Industries and Holdings, founded by Chinnakannan Sivasankaran, known as Siva-the former promoter of telecom firm, Aircel. In a new development, the creditors have agreed to accept out-of-court offer from the businessman, according to ET Prime.
Journalist and activist Sucheta Dalal has tweeted about it to Ministry of Finance and Finance Minister Nirmala Sitharaman. She has asked if there will be explanations as to why defaulters like Siva, Gitanjali Group's Mehul Choksi and Winsome Diamonds' Jatin Mehta are being spared.
IDBI Bank, one of the company’s financial creditors, has confirmed this, according to ET Prime. The bank said in a statement that most of the creditors voted in favor of withdrawing the insolvency proceedings against the company.
The case pertains to loans of Rs 322 crore and Rs 523 crore given to the companies- Axcel Sunshine Ltd and Finland-based WinWindD Oy (WWO), owned by Sivasankaran and his son. The loans later turned non-performing assets.
In October 2010, IDBI sanctioned a Rs 322 crore loan to WWO, which became a non performing asset (NPA) in October 2013. In February 2014, IDBI. In February 2014, IDBI Bank sanctioned a loan of Rs 523 crore to Axcel Sunshine Ltd.
C Sivasankaran is a businessman from Chennai who also founded the coffee chain Barista in India. He faced a CBI inquiry in the IDBI loan case. Siva Industries and Holding owes banks Rs 5,000 crore. Insolvency proceedings were initiated against this company in 2019.
