GVK Power receives order to pay $2.19 billion by English Court

GVK Power and the other defendants are ordered to pay $2.19 billion to banks, which includes the interest sums that the English Court crystallised.

In order to cover the acquisition and pre-development expenditures of the Australian coal project, GVK Power & Infrastructure gave GVK Coal Developers Pte Limited, Singapore, a corporate guarantee in 2011 to the extent of 49% of the total loan amount of $1.13 billion. In FY15–16, the aforementioned loan was categorised as non-performing.

In addition to equity shares and other investments made by GVK Group, a group of Indian banks operating abroad, led by ICICI Bank, provided a portion of the overall acquisition and pre-development costs incurred by GVK Coal Developers for the Australian Coal Project.

On November 09, 2020, the lenders submitted a claim to the England Court of the High Court of Justice, Business and Property Courts of England and Wales, with the intention of recouping the money that was advanced to GVK Coal Developers.

“We are awaiting the detailed judgment to evaluate the next course of action to be taken from our end. Also, we are awaiting the update and a decision on the applications moved by the defendants in the said English Court seeking set aside of the ex-parte orders that will also have a direct impact on this order received today,” said GVK Power & Infrastructure.