London Court directs Geodesic to pay over Rs 976cr to Citibank

IT firm Geodesic today said the London Court has directed it to pay Citibank a sum of USD 157.06 million (over Rs 976 crore) in a case filed by bondholders against the company.
Besides, the company has been directed to pay unpaid default interest and cost of court proceedings.
"The London Court has given a summary judgement in the case filed by the Bondholders through their Trustees, Citibank N.A., London (Citibank). According to the judgement, the company has to pay to Citibank a sum of USD 157,064,251," Geodesic said in a filing to the BSE.
Besides, Geodesic has also been directed to pay over USD 14.88 million (Rs 92.5 crore) of unpaid default interest (up to

and including February 7, 2014) and USD 39,266.06 (Rs 24.39 lakh) per day of default interest from February 8, 2014 to the date of payment.
"It is also ordered that the company would also have to pay the cost of the proceedings i.E. GBP 1,22,500 (Rs 1.27 crore) excluding of VAT," it said.

In 2008, Geodesic had raised funds through FCCB and the same was due for repayment in January last year, which the company has not been able to repay.
The FCCB bondholders, through their trustees, filed a winding up petition against the company for defaulting the dues.
The London branch of Citibank is a trustee in the case where it has approached the court to recover its dues from the company on behalf of bondholders.

On standalone basis, Geodesic posted a net loss of Rs 43.12 crore for the year ended June 30, 2013, while its total income stood at Rs 172.76 crore.