IDBI Bank has secured a USD 239 million judgment in the commercial division of the High Court of London against a Cypriot subsidiary of India-based Essar Shipping Group, believed to be one of the largest debt judgments obtained by an Indian bank in the English courts. Mumbai-headquartered IDBI had entered into loans totalling USD 148 million with two Singapore registered companies Varada Drilling One Pte Ltd and Varada Drilling Two Pte Ltd for the construction of two jack up drilling rigs in March 2013. IDH International Drilling Holdco Ltd (IDH), the Cypriot-registered parent company of the borrowers, gave a corporate guarantee in respect of the loan. The loan and guarantee were governed by English laws and were therefore subject to the jurisdiction of the English courts.
The judgment assumes significance both in terms of its size and the message it sends to defaulters that Indian banks are willing and able to recover outstanding debts through English courts.
Mumbai-headquartered IDBI had entered into loans totalling USD 148 million with two Singapore registered companies Varada Drilling One Pte Ltd and Varada Drilling Two Pte Ltd for the construction of two jack up drilling rigs in March 2013.
Loan and guarantee were governed by English laws and were subject to jurisdiction of English courts.
IDBI Bank has secured a $ 239 million judgment in the commercial division of the High Court of London against a Cypriot subsidiary of India-based Essar Shipping Group, believed to be one of the largest debt judgments obtained by an Indian bank in the English courts. Mumbai-headquartered IDBI had entered into loans totalling $ 148 million with two Singapore registered companies Varada Drilling One Pte Ltd and Varada Drilling Two Pte Ltd for the construction of two jack up drilling rigs in March 2013.
IDH International Drilling Holdco Ltd (IDH), the Cypriot-registered parent company of the borrowers, gave a corporate guarantee in respect of the loan. The loan and guarantee were governed by English laws and were therefore subject to the jurisdiction of the English courts.
Mumbai-headquartered IDBI had entered into loans totalling $148 million with two Singapore registered companies Varada Drilling One Pte Ltd and Varada Drilling Two Pte Ltd for the construction of two jack up drilling rigs in March 2013