Varun Resources Ltd, Indias largest owner of liquefied petroleum gas (LPG) carriers, has had to halt operations of its eight Indian-flagged LPG tankers at the behest of a consortium of 12 banks led by State Bank of India after defaulting on loans of about 2,000 crore, putting its future at stake. Compounding the issue, the ships in question have been arrested by a fleet management company.
Varun Resources is facing bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC) after the National Company Law Tribunal (NCLT) ordered start of the corporate insolvency resolution process on a petition brought by Indian Bank, which is part of the lending consortium.
Simultaneously, on August 30, …
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