Based on the report, GVK defaulted on a $1-billion mortgage and a $35-million letter of credit score facility given by banks in 2011, and a $160-million mortgage lent in 2014.
GVK Coal Builders (Singapore) and 9 different GVK Group corporations are being sued within the case which opens Monday.
As per the banks, GVK didn’t make repayments as they fell due and didn’t get hold of a mining lease within the Alpha challenge in Queensland, Australia by December 31, 2012, which was a challenge milestone that needed to be glad. The banks reportedly requested GVK in November 2020 to cancel the settlement and requested reimbursement. However neither GVK nor its guarantors has paid any of the sums owed, the banks claimed.
However, GVK argued that “the loans was to supply half funding for the acquisition of the Hancock corporations in Australia to develop their property — together with the Alpha challenge — into working coal mines”.
“The deterioration available in the market for coal, the dearth of third-party funding, authorized challenges to the mining initiatives within the courts of Queensland, meant that little or no progress was made to develop the mining property,” GVK states. GVK states it couldn’t get hold of the mining lease owing to litigation by environmental teams however denies this was a “default”.