IDBI Bank files insolvency plea against Mumbai Metro One
IDBI Bank has petitioned the Mumbai bankruptcy bench to initiate corporate insolvency against Mumbai Metro One Pvt Ltd, which operates the metro line from Versova to Ghatkopar. The lender is seeking recovery of Rs 133.37 crore, including interest component, from Mumbai Metro One, according to stock exchange disclosure.
Anil Ambani's Reliance Infrastructure owns a 74% stake in the metro line operator, while the remaining 26% stake is held by Mumbai Metropolitan Regional Development Authority (MMRDA), an apex body for planning and coordinating development activities in Mumbai.
This was the first metro project awarded in the country on a public-private partnership (PPP) basis and entails the design, financing, construction, operation and maintenance of about 12 km elevated metro operating between Versova to Ghatkopar with 12 stations en-route.
In August, State Bank of India filed a petition at National Company Law Tribunal (NCLT) Mumbai bench to admit the company for corporate insolvency for recovery of their Rs 416 crore debt.
Other lenders include Canara Bank, Indian Bank, Bank of Maharashtra, IDBI Bank and India Infrastructure Finance Company (UK).
The company has bank loans of Rs 1650 crores and an external commercial facility of $63.44 million, according to a rating report by Brickwork dated November 21, 2022. The rating is tagged as non-cooperative borrower by the rating agency.
The networth of Mumbai Metro One “has been eroded, its current liabilities have exceeded its current assets and it has an overdue obligation payable to its lenders,” Reliance Infrastructure said in its annual report for FY23.
The parent company has proposed a one time settlement to lenders «which is under discussion and awaiting
