PNB-led consortium takes Shriram factory possession

PNB-led consortium takes Shriram factory possession

Punjab National Bank (PNB) on Friday said a consortium led by it has taken the symbolic possession of the factory of Leitwind Shriram Manufacturing (LSML), a Shriram group company, in Chennai to recover Rs 600-crore loans the company has availed of.

Leitwind Shriram Manufacturing, according to PNB, had availed of credit facilities to the tune of Rs 600 crore from a consortium. Besides PNB, other members of the consortium are: State Bank of India, Oriental Bank of Commerce, Bank of Maharashtra and L&T Finance.

Shrirarm Ventures (SVL) holds 48.5% shareholding in LSML and the SVL Trust had provided its corporate guarantee to secure the facilities sanctioned to LSML.

PNB has said the consortium has taken possession of the factory, situated at the SIPCOT Industrial Complex, Gummudipoondi, and is going ahead with all other legal actions against the borrower and guarantors to recover dues.

LSML had defaulted on its loan repayment obligation and the account was classified as a non- performing asset (NPA) in 2016. Despite repeated notices, neither the borrower nor the guarantor had honored its repayment obligations, said the bank.

The consortium had issued notice under the SARFAESI Act 2002 advising the borrower and guarantors to repay their dues within 60 days, failing which lenders will be constrained to take possession of the factory land and building at Gummudipoondi.

Leitwind Shriram Manufacturing is a joint venture between Shriram EPC and Leitwind BV. The JV makes wind electric generators.