SBI moves to invoke Ruias' personal guarantees of Rs 15K cr

The SBI on Monday filed recovery suit against Prashant and Ravi Ruia, before the Debt Recovery Tribunal (DRT) in Ahmedabad.

The Essar Steel Lenders led by SBI are saddled with dues of over Rs 63,000 crore, including overdue interest and penalties.

The SBI will receive only a part of its dues as per ArcelorMittal's IBC Resolution Plan of only Rs 42,000 crore -- leaving lenders with balance dues of over Rs 20,000 crore, comprising principal, overdue interest and penalties.

The SBI seeks attachment of global assets of Ruias to recover its balance Essar Steel dues, through debt recovery proceedings at DRT.

Essar spokesperson when contacted said: "Total admitted dues of the secured creditors as verified by the Resolution Professional of Essar Steel is Rs 45,000 crores. Essar Steel Asia Holdings Ltd has already offered to repay the secured creditors these dues in full, and Arcelor Mittal plan provides for Rs 42,000 crore."

SBI hopes to recover its balance dues from Promoters Prashant Ruia and Ravi Ruia, by seeking attachment of their personal global assets.

Another Essar official on condition of anonymity added, "Admitted claims of Secured Financial creditors of ESIL amounted to Rs.45,000 crore

* As per Arcelor Mittal resolution plan, secured financial creditors will get approximately Rs 42,000 crore i.e 92 per cent. Further, EBITDA earned by ESIL during CIRP period is to be paid to the creditors. Thus, there will hardly be any shortfall to secured financial creditors.

* Personal Guarantees were extended for only part of secured loans (approximately Rs 11,000 crore). Considering recovery as above from the approved resolution plan, there may not be any shortfall and guarantees are not at risk."

The SBI invoked the personal guarantees of Prashant Ruia and Ravi Ruia about 6-8 months ago and have now filed suit before DRT, Ahmedabad.

A Decree from DRT will lead to attachment on all personal assets of Ruias both in India and abroad.

--IANS

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