IDBI Bank secures $239-m debt ruling in UK High Court

London, June 3

IDBI Bank has secured a $239-million judgment in the High Court of London against a Cypriot subsidiary of India-based Essar Shipping Group.

IDBI had entered into loans totalling $148 million with two Singapore registered companies — Varada Drilling One Pte Ltd and Varada Drilling Two Pte Ltd — for the construction of two jack up drilling rigs in March 2013.

The case file

• IDBI had entered into loans totalling $148 million with two Singapore registered companies for the construction of two jack up drilling rigs in March 2013
• IDH International Drilling Holdco Ltd., the Cypriot-registered parent company of the borrowers, gave a corporate guarantee in respect of the loan

IDH International Drilling Holdco Ltd (IDH), the parent company of the borrowers, gave a corporate guarantee in respect of the loan. The loan and guarantee were governed by English laws.

“This is an important judgment both in terms of its size and the message it sends to defaulters that Indian banks are willing and able to recover outstanding debts through the English courts,” said Nick Curling, legal director at TLT LLP, the London law firm representing IDBI. — PTI