Creditors to scrap bankruptcy process of Siva Industries
Sivasankaran, who was the founder of Aircel before he sold it to Malaysia’s Maxis Communications, is no stranger to controversy.
Synopsis
The creditors, which include State Bank of India and Malaysia’s Maxis Communications Bhd, the former owner of telecom operator Aircel, have accepted Sivasankaran’s offer to pay them Rs 500 crore in return for cancelling all outstanding claims and withdrawing legal proceedings against his company, according to the people cited above. The creditors voted in favour of the withdrawal last week.
Creditors have agreed to withdraw bankruptcy proceedings against Siva Industries and Holding, the group holding company of businessman C Sivasankaran, and accept an out-of-court offer from him, according to people familiar with the matter. Bankruptcy experts termed the development unusual, citing the rejection of such offers by promoters in the past.