Debtors have filed an insolvency petition against Peninsula Land with the National Firm Law Tribunal (NCLT) to rely on corporate guarantees offered by the Ashok Piramal company worth Rs 1.17 billion.
The trustee of the debentures and the collateral documents securing the debt instruments, Vistra ITCL, is acting on behalf of the debenture holders.
To house its real estate projects, Peninsula Land had established nearly two dozen special purpose entities (SPV). To ring-fence their liabilities and prevent the group as a whole from being harmed by the default of one project, developers frequently park projects in such distinct SPVs.
The corporate guarantee was given for the debentures that one of these SPVs issued. The holders of the debentures contend that in July 2021, the SPV missed payments due on the debentures. The NCLT rejected the debenture holders' argument.
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