IDBI Bank: IDBI Bank seeks RoC’s help in board battle with NTADCL.

MUMBAI: IDBI Bank has filed a complaint with the Registrar of Companies (RoC), alleging that New Tirupur Area Development Corporation (NTADCL), which underwent debt restructuring in 2011, had ignored its agreement to include the lender’s nominee director on its board until the dues were paid. ) sent a letter to stable.

NTADCL faced financial difficulties in 2011 that led to debt restructuring totaling ₹575.34 crore. As part of the Corporate Debt Restructuring (CDR) exercise, IDBI Bank and some other lenders converted senior debt into equity, with IDBI Bank retaining ₹6.11 crore. By stake.

A Master Restructuring Agreement (MRA) has been signed allowing lenders, including IDBI Bank, to have nominated directors on the board of NTADCL till all dues are settled.

After repayment of the loan, the company removed nominated directors of IDBI Bank and SBI from the board of directors citing vacancies arising from loan repayment, according to a letter sent by IDBI to the RoC, which was reviewed by ET.

Although NTADCL has repaid the outstanding loans to its CDR lenders excluding IL&FS, the lenders still hold shares worth ₹86.30 crore in the share capital of the company. IDBI Bank said that now that part of its debt has been converted into equity, it still reserves the right to focus on having directors on its board to continue to engage in governance issues. In a letter to the RoC, the public sector bank said: By excluding nominated directors from the Board of Directors, NTADCL violated the provisions of the MRA. While IDBI Bank had invoked the provisions of MRA, Articles of Association and Companies Act, 2013 to assert its right to retain nominee directors till all dues were cleared, NTADCL insisted on excluding nominee directors from the board, according to the letter.